NVIDIA ($NVDA)'s Q2 results dazzle with soaring demand for AI, plus a new buyback program hinting at undervalued shares (485.67 +14.51).
NVIDIA ($NVDA +3%) delivered a smashing Q2 report, exceeding expectations and affirming the AI craze's strength. As the go-to GPU supplier for AI giants, NVDA proved its worth. Despite concerns about its valuation, trading at 18x FY25 sales, NVDA crushed it, posting a 429% YoY surge in earnings to $2.70 and a 102% jump in revenue to $13.51 billion. Q3 guidance looks equally robust at $15.68-16.32 billion. Plus, they're buying back $25 billion in shares, a clear sign they think their stock is a steal.
The Data Center segment shone, up 171% YoY to $10.32 billion. Cloud titans like AWS, Google Cloud, and Microsoft Azure gobbled up NVDA's HGX AI supercomputers. China played its part, contributing its usual 20-25%. Export restrictions in China won't bite immediately, but long-term, they could.
Gaming rebounded, with sales up 22% YoY to $2.49 billion, thanks to back-to-school laptop sales. Professional Visualization lagged YoY but leaped 28% sequentially. Automotive grew 15% YoY but dipped 15% sequentially, mainly due to China's sluggish demand.
NVDA's Q2 wasn't as jaw-dropping as last time, but it cements AI's demand. Rivals like Intel and maybe Apple won't back down, but NVDA's firmly planted in AI's future. The AI goldmine beckons, and NVDA's leading the way.
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