Nvidia announces stock split as revenue surges on AI demand
Nvidia announces stock split as revenue surges on AI demand
Nvidia's CEO Jensen Huang said Wednesday that demand for generative artificial intelligence training is "accelerating," as the AI-chip designer posted quarterly earnings that beat market expectations.
Why it matters: Dubbed the most important stock on planet earth by Goldman Sachs, the company is the main bellwether for the pace of AI progress.
Driving the news: Shares of Nvidia shot up over 4.4% in extended trading after reporting earnings and sales that topped Wall Street estimates, and announced a 10-for-1 stock split.
- Revenue topped $26 billion, up 18% from the prior quarter, while earnings were $6.12 adjusted.
- For the current quarter, the company now expects sales to top $28 billion, which also exceeded expectations.
The big picture: Nvidia is expanding its business beyond chips.
- With its new NIM software platform which helps customers better use Nvidia chips, the company is trying to become "the AI ecosystem," like Apple has done with iOS, Paul Meeks, co-CIO of Harvest Portfolio Management, told CNBC in March, following Nvidia's AI developer conference.
- "The nice thing about the software licensing model is there are no manufacturing costs. It's 100% gross margins, so pound for pound, it will be much more profitable."
Between the lines: Nvidia is making itself even more indispensable for companies anxious to stay ahead in AI — and fueling even more profitable growth along the way.
This is a developing story. Check back for updates.
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