Nvidia Stock Soars Above $1000 as Q1 Earnings Surpass Expectations

Nvidia, the leading chipmaker known for its powerful graphics processing units (GPUs) used in artificial intelligence (AI) applications, reported impressive fiscal first-quarter results on Wednesday, sending its stock soaring past the $1,000 per share milestone in extended trading.

However, despite the company’s strong performance, AI-related cryptocurrency tokens experienced brief declines, contrary to crypto traders’ expectations.

TLDR

• Nvidia reported strong Q1 earnings, with revenue surging 262% year-over-year to $26.04 billion, beating analyst estimates of $24.65 billion.
• The company’s data center sales, which include AI chips, rose 427% to $22.6 billion, driven by shipments of its Hopper graphics processors.
• Nvidia expects to see revenue from its next-generation AI chip, Blackwell, later this year, with production shipments starting in the current quarter.
• Despite Nvidia’s impressive results, AI-related cryptocurrency tokens such as RNDR, GRT, FET, and AGIX saw brief declines following the earnings report.
• Nvidia announced a 10-for-1 stock split effective June 7 and raised its quarterly cash dividend by 150% to a penny per share on a post-split basis.

Nvidia’s Q1 revenue surged 262% year-over-year to $26.04 billion, beating analyst estimates of $24.65 billion.

The company’s data center sales, which include its AI chips, rose an astonishing 427% to $22.6 billion, driven by shipments of its Hopper graphics processors.

Nvidia’s CEO, Jensen Huang, stated that the next industrial revolution has begun, with companies and countries partnering with Nvidia to build AI factories and produce artificial intelligence.

The chipmaker’s strong results suggest that demand for AI chips remains robust, and Huang announced that the company would begin to see revenue from its next-generation AI chip, called Blackwell, later this year.

Production shipments of Blackwell products are expected to start in the current quarter, with data centers using these processors up and running by the fourth quarter.

Despite Nvidia’s impressive performance, several AI-related cryptocurrency tokens experienced brief declines following the earnings report. Render (RNDR), an Ethereum-powered platform enabling decentralized GPU rendering, saw a 12% decline within five hours of the report’s release.

Other tokens, such as The Graph (GRT), Fetch.ai (FET), and SingularityNet (AGIX), also recorded decreases ranging from 4.77% to 6.42%.

Crypto traders had anticipated that Nvidia’s strong results would lead to a similar bump in AI token prices.

However, the immediate reaction was disappointing for some. Nonetheless, traders remain confident that Nvidia’s success will eventually flow into the wider crypto market and have a positive impact on AI-related tokens.

In addition to its earnings report, Nvidia announced a 10-for-1 stock split effective June 7 and raised its quarterly cash dividend by 150% to a penny per share on a post-split basis.

The company also addressed investor concerns regarding U.S. trade restrictions with China and its ability to source enough components from contract manufacturers to meet demand.

Huang emphasized that demand is strong in what he described as a major platform shift and that the company is racing every day to fulfill its growing backlog of orders.

He also assured investors that Nvidia is on a one-year rhythm for introducing new chips and networking technology.

Nvidia’s fiscal Q1 report has garnered significant attention from Wall Street, with analysts closely watching the company’s performance and guidance.

The chipmaker’s soaring stock price has given it a significant weight in key stock market indexes and exchange-traded funds, making it a crucial player in the AI revolution.

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