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Nvidia Stock Surges 7% Following Strong Q1 Beat
May 23, 2024 2:51 PM - Davit Kirakosyan
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Nvidia's (NASDAQ:NVDA) strong performance in the first quarter exceeded Wall Street expectations, largely due to high demand for AI-driven solutions in its data center segment. The company provided optimistic guidance for the current quarter and announced a ten-for-one stock split. Following the announcement, Nvidia's stock rose by over 7% in pre-market today.
The company's adjusted earnings were $6.12 per share on $26.04 billion in revenue, surpassing analysts' predictions of $5.58 per share on $24.53 billion in revenue.
The impressive results were driven by a 427% increase in data center revenue, reaching $22.56 billion, exceeding the expected $21.32 billion. This surge was attributed to strong demand for Nvidia's Hopper GPU computing platform, which supports large language models, recommendation engines, and generative AI applications.
For Q2, Nvidia projects revenue of $28 billion, plus or minus 2%, above the anticipated $26.54 billion. Additionally, Nvidia announced a ten-for-one stock split to be implemented on June 7, aimed at making its shares more accessible to employees and investors. The company also raised its quarterly cash dividend by 150% to $0.10 per share.
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