Nvidia’s revenue beats high expectations as AI chip demand climbs

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Nvidia’s revenue soared 262 per cent in the past quarter, beating investors’ lofty expectations and sending the shares higher in after-hours trading on Wednesday.

The chipmaker also announced a 10-for-one stock split effective from June 7, and said it was raising its quarterly cash dividend 150 per cent.

Revenue for the three months to the end of April was $26bn versus consensus estimates of $24.7bn, driven by record artificial intelligence chip sales. The enormous year-on-year increase was similar to the prior quarter, when growth hit 265 per cent.

For the current quarter it expects revenue of about $28bn, plus or minus 2 per cent, compared with consensus estimates of $26.8bn.

Nvidia shares, which have extended their blistering rise by more than 90 per cent since the start of the year, were up 2 per cent in after-hours trading. 

Demand for Nvidia’s AI data centre graphics processing units has skyrocketed in the past year as the biggest tech companies rush to develop the computing infrastructure needed to deliver powerful new AI products at scale. Google, Microsoft, Meta and Amazon have all indicated that their spending would remain high throughout 2024. 

This is a developing story