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Nvidia stock soars to record high, reports $13.5B in revenue for Q2

(Qnnflash) – Nvidia exceeded exceedingly high expectations for its most recent quarter, propelling shares up by over 9.5% in after-hours trading.

In terms of figures: The leading AI chip manufacturer reported a revenue of $13.5 billion for the second quarter, surpassing the anticipated $11.2 billion forecasted by Refinitiv.

This amount is twice the $6.7 billion the company reported during the corresponding quarter of the previous year, signifying an almost 90% rise from the preceding period.
Earnings arrived at $2.70 per adjusted share, in comparison to the expected $2.09.

Looking ahead to Q3, Nvidia has projected revenue to be approximately $16 billion, a notable increase from the $12.6 billion prediction.

Broadening the perspective: The market is fervently drawn to this stock.

Nvidia’s rapid ascent has driven over 10% of the market’s ascension up to July.
Furthermore, the stock’s gains have been the chief contributor to the Nasdaq 100’s impressive 36% surge this year.
Insight from Axios’ Scott Rosenberg: Nvidia specializes in crafting processors tailored to expedite the computations that underlie applications like ChatGPT and other generative AI systems. This positioning has situated the company right in the center of the technology industry’s burgeoning AI revolution, and the assumption in Silicon Valley is that demand will continue to soar.

Zooming in: The quantity of outstanding call option contracts, an indication of bullish sentiment about a stock, reached a peak in August, coinciding with an influx of FOMO trades flooding the market, as reported by WSJ.

Of the ten largest companies within the S&P 500, Nvidia is the sole stock where call option prices surpass put option prices, according to Bloomberg.

Commentary from industry experts: “It reminds me of what people were doing in Tesla,” remarked Danny Kirsch, the head of options at Piper Sandler, in conversation with WSJ. “You can make 10 times your money in a day.”

The broader context: Anticipating demand for Nvidia’s AI chips won’t pose an issue going forward—the challenge lies in the company’s production pace.

Any limitations in supply will significantly affect other companies reliant on Nvidia chips to manufacture their goods and services. As evidence, consider the recent statements from Supermicro and the subsequent price fluctuations of both stocks.

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