NVIDIA has released its earnings report for the second quarter ending July 28, 2024, showing impressive results.
Second Quarter Results
The company earned $30 billion in revenue, a 122% increase from the same time last year, with a strong position in the AI chip market. Earnings per share were $0.68, surpassing analysts' expectations of $0.64 per share and $28.72 billion in revenue.
Third Quarter Forecast
For the third quarter, NVIDIA expects to make $32.5 billion in revenue. The upcoming release of its Blackwell chips is anticipated to help increase earnings further and strengthen its role in the AI chip industry.
Competition in the AI Chip Market
Despite these strong results, NVIDIA’s stock fell about 2.10% to $125.61 and then dropped another 6.81% in after-hours trading to $116.88. This decline comes amidst growing competition in the AI chip market. New startups like Cerebras, d-Matrix, and Groq are entering the field, along with big tech companies such as Microsoft, Meta, Amazon, Alphabet, and OpenAI developing their own AI chips.
In conclusion, NVIDIA showcased significant growth driven by its AI chips, but competition in the rapidly evolving market continues to intensify.
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