Nvidia exceeded forecasts yesterday thanks to demand driven by AI.

The rush to deploy generative artificial intelligence continues to drive up demand for Nvidia's processors, and the company just posted better-than-expected second-quarter profits and optimistic forecasts.

Adjusted EPS of $2.70 was reported by Nvidia on revenue of $13.51 billion. Investing.com polled analysts who predicted an EPS of $2.07 on $11.13 billion in sales.

As businesses switch from general-purpose computing to accelerated computing and generative AI, the high-margin data centre market increased by 171% to a record $10.32B in Q2 from a year earlier.

The Nvidia AI product suite, which includes chips and a cloud service to train generative AI models, has grown to be the go-to choice for startups and companies trying to enter the AI market as demand for AI increases. The chipmaker predicted that for the following year, supplies would increase each quarter.

The Nvidia AI product suite, which includes chips and a cloud service to train generative AI models, has grown to be the go-to choice for startups and companies trying to enter the AI market as demand for AI increases. The chipmaker predicted that for the following year, supplies would increase each quarter.

The gaming division's quarterly revenue increased 22% to $2.49 billion.

The business predicted $16 billion in sales for the third quarter of the fiscal year, give or take 2%.

The far better-than-anticipated outlook "will be fuel in the engine to ignite a tech rally we see continuing into the rest of the year despite the recent pullback and Fed jitters," Wedbush said in a note released on Wednesday in response to Nvidia's earnings.

According to Wedbush, the most recent findings also suggest that enterprise expenditure on AI is about to see a significant increase. This will be advantageous for businesses involved in AI, such as Microsoft, Google, Apple, Oracle, Palantir, and many others.

Additionally, the chipmaker launched a $25 billion stock buyback plan, with stock repurchases anticipated to last the remainder of this year. Nvidia said that in Q2, it spent $3.28B on buybacks.

According to analysts at Morgan Stanley, the business produced "another exceptional quarter."

With considerably larger expectations this quarter, NVDA accomplished it again, with its data centre business expanding more than three times in six months. "Last quarter was the first quarter in semis history we saw a company guide revenues $4 bn above consensus," said Morgan Stanley.

The price estimate was increased by Rosenblatt analysts to $1,100 per share.

(Sources: investing.com, reuters.com)