Nvidia Stock Soars Past $500 After Chipmaker Demolishes Q2 Estimates
Comment of the Day

August 23 2023

Commentary by Eoin Treacy

Nvidia Stock Soars Past $500 After Chipmaker Demolishes Q2 Estimates

This article from Benzinga may be of interest. Here is a section:

Nvidia Corp. (NASDAQ:NVDA) strong positioning in artificial intelligence technology is taking the chipmaker into the stratosphere Wednesday.

Santa Clara, California-based Nvidia’s second-quarter non-GAAP earnings per share rose 422% year-over-year from 51 cents to $2.70. Sequentially, the measure improved 148% from the previous quarter’s $1.09 per share.

Analysts, on average, expected the bottom-line result to come in at $1.91.

The earnings growth reflected strong revenue, which climbed 101% year-over-year and 88% sequentially to $13.51 billion. The topline came ahead of the consensus estimate of $10.3 billion and the company’s guidance of $11 billion plus or minus 2%.

Eoin Treacy's view

Wall Street began its rebound in early trading as the bond market rallied in response to downgraded expectations of job growth. The tech sector in particular firmed, as optimism around Nvidia’s earnings built. Following the strong results and upgraded guidance, the share jumped above $500 in after hours trading. The 10% advance was exactly what the options market had priced in before the announcement. 

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