Semiconductor Shares Extended Gains in Morning Trading, With Nvidia Soaring 28%

Tiger Newspress2023-05-25

Nvidia Corp. results showing that customers are binging on chips used in artificial intelligence computing sent a complex of stocks tied to the burgeoning technology soaring. Nvidia shares rallied 28% in morning trading.

Other semiconductor makers also jumped. TSMC rose nearly 13%; AMD rose nearly 10%; Applied Materials, ASML rose over 5%; Broadcon, Micron rose over 3%.

Nvidia forecast current-quarter revenue of $11 billion, plus or minus 2%. Analysts polled by Refinitiv are expecting revenue of $7.15 billion.

"Given the generative AI gold rush taking place, this should fuel demand for Nvidia's chips for the remainder of the year," said Edward Jones analyst Logan Purk.

Nvidia did not provide a full-year forecast on Wednesday, but Chief Financial Officer Colette Kress said the company had procured "substantially higher supply" for the second half of the year.

Adjusted revenue for the quarter ended April 30 was $7.19 billion. Analysts polled by Refinitiv were expecting revenue of $6.52 billion. The company's data center chip sales hit $4.28 billion, beating analyst estimates of $3.89 billion, according to segment data from FactSet.

Gaming chip revenue beat Wall Street expectations at $2.24 billion versus estimates of $1.97 billion, according to FactSet data.

Net income rose to $2.04 billion, or 82 cents per share, from $1.62 billion, or 64 cents per share, a year earlier. Excluding items, the company earned $1.09 per share in the first quarter, beating estimates of 92 cents.

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Comments

miker9110
2023-05-26
miker9110
G
Bi Han
2023-05-26
Bi Han
Madness
Joe W
2023-05-25
Joe W
I just sold Nvidia stock made decent return after a long wait, awesome!
- MBM33:
  He perhaps did not noticing that nvda pump in more cash, hopefully he did not let its all go.
- bryan831:
  haha you'll miss out on the next run up then. they have 2 quarters of 70% margin, most likely will reinvest into new facilities or R&D, gonna miss out on those gains in the coming years.