Nvidia Shares Record a Huge Jump after the Company’s First Quarter Report

12 May

By Mudit Mohilay, The Tech Portal

Nvidia is one of those companies that creates things that quietly work in the background, and yet, are vital to the functioning of so many pieces of consumer electronics. The company has recently reported its first quarter earnings and so impressive were they, that Nvidia stock recorded a 10%+ jump soon after.

In its first quarter report for 2017, Nvidia said that it had generated around $507 million in net income. This marked a massive, 100%+ year over year jump,. In other words, Nvidia’s revenue more than doubled as compared to the first quarter last year. The massive increase is being attributed to changes in the market that have suddenly increased demand for GPUs capable of deep learning.

And of course, with startups and companies mushrooming in areas like self-driving cars, image recognition, speech recognition and so on, Nvidia’s GPUs which are capable of handling deep learning has surged. This is further compounded by the fact that many established companies that until now did not have much to do with Nvidia and its products are now stepping into the game. And they well should. After all, every other major tech company that we know of is working in the self-driving car space.

AI and deep learning are not all however. Revenue for Nvidia’s Tegra processor also more than doubled and reached a value of $332 million. Considering that Nintendo Switch deploys the very same processor, it could well be a result — or at least affected in part — by the same. The company also said that its datacenter GPU business had almost tripled as compared to last year.

Overall, Nvidia beat Wall Street expectations by a comfortable margin. The company delivered $0.79 in earnings per share on revenue of $1.94. Compare it with Wall Street expectations, and they were pegging the company to report earnings of 67 cents per share with $1.91 billion in revenue. Meanwhile, stock prices had reached $113.76 in after hours trading.