NVIDIA Corp. (NASDAQ: NVDA) shares surged more than 14 percent on Wednesday after the company reported quarterly revenue and earnings that beat analysts’ estimate.
Revenue rose 48.4 percent to $1.94 billion in the first quarter, beating analysts’ estimate of $1.91 billion, according to Thomson Reuters. The company earned $0.79 a share in the quarter ended April 30, up 126 percent from $0.35 per share a year earlier. Analyst had projected net income of 66 cents a share.
The company also posted a strong guidance for the second quarter, thanks to expectation for strong performance in its data-center GPU business and its prospects in artificial intelligence. The company now see second quarter revenue of $1.95 billion, plus or minus 2 percent. This also beat analysts’ estimate of $1.89 billion, according Thomson Reuters.
"The AI revolution is moving fast and continuing to accelerate," said Jensen Huang, founder and chief executive officer of NVIDIA. "NVIDIA's GPU deep learning platform is the instrument of choice for researchers, internet giants and startups as they invent the future.”
"Our Datacenter GPU computing business nearly tripled from last year, as more of the world's computer scientists engage deep learning. One industry after another is awakening to the power of GPU deep learning and AI, the most important technology force of our time," he said.
The stock jumped as much as 14.7 percent to $118.05 in the early trading.