Nvidia reported first-quarter earnings for its fiscal 2024 on Wednesday, with a stronger-than-expected forecast that drove shares up 19% in extended trading.
Nvidia said it expected about $11 billion, plus or minus 2% in revenue, in the current quarter, far surpassing Refinitiv expectations of $1.06 per share on $7.15 billion in sales.
Nvidia stock is up 109% so far in 2023, mostly driven by optimism stemming from the company's leading position in the market for AI chips. Nvidia CEO Jensen Huang said the company was seeing "surging demand" for its data center products.
Nvidia's datacenter group reported $4.28 billion in sales, versus expectations of $3.9 billion, a 14% annual increase. Nvidia said that the company's performance was driven by demand for the company's GPU chips from cloud companies as well and large consumer internet companies, which use Nvidia chips to train and deploy generative AI applications like OpenAI's ChatGPT.
Nvidia's strong performance in data center shows that AI chips are becoming increasingly important for cloud providers and other companies that run large amounts of servers.