Nvidia Crushes Q2 Earnings with 106% Revenue Growth
Nvidia (NASDAQ:NVDA) has reported impressive second-quarter results, exceeding Wall Street's expectations. The leading fabless designer of graphics chips saw its revenue soar by 106% year-on-year to $96.22 billion, surpassing analyst estimates of $92.37 billion. This marks the 13th consecutive quarter of growth for Nvidia, with a revenue guidance of $108 billion for the next quarter, beating expectations by 3.3%. The company's non-GAAP profit of $2.22 per share was also above consensus estimates, at 6.1%.
Nvidia's founder and CEO, Jensen Huang, said that 'AI has reached its inflection point,' with useful work being done and tokens becoming productive and profitable. He added that compute is now a revenue driver, with demand accelerating as multiple frontier labs scale in parallel. The company's inventory levels have increased, however, with 119 days of outstanding inventory, compared to 115 in the previous quarter.
Nvidia's growth has been remarkable over the years, with a compounded annual growth rate of 69.1% over the last five years. Its revenue has grown at an impressive 77.4% over the last two years, and sell-side analysts expect it to grow by 60.3% over the next 12 months.