Nvidia’s Stock Surges After AI Chip Maker Announces Stock Split and Positive Sales Outlook

Nvidia, a chipmaker based in Santa Clara, California, exceeded second-quarter revenue expectations and announced a ten-for-one forward stock split, leading to a 4% increase in its stock price to nearly $974. The company’s value has already tripled in the past year, with shares rising more than 90% in 2024.

The demand for Nvidia’s chips has been unprecedented, as companies invest billions in acquiring advanced semiconductors to power data centers capable of handling complex AI tasks. Tech giants like Alphabet, Microsoft, and Amazon have been vying for Nvidia’s high-end chips to dominate the artificial intelligence computing race. Nvidia’s contract chipmaker, Taiwan Semiconductor Manufacturing, is working on expanding its advanced packaging capacity to address supply chain constraints.

In April, Taiwan Semiconductor Manufacturing announced plans to double its advanced packaging capacity this year. Nvidia forecasted second-quarter revenue of $28 billion, marking a 2% increase from the previous quarter. Analysts had predicted revenue to be around $26.66 billion, according to LSEG data.

Nvidia’s first-quarter revenue stood at $26.04 billion, surpassing estimates of $24.65 billion. CEO Jensen Huang has been leading the company’s growth in the AI sector, fueling optimism among investors. The company’s strong performance in the market reflects the increasing demand for AI technology and semiconductors.

Overall, Nvidia’s impressive financial results, combined with the market’s positive response to its stock split announcement, have positioned the company as a key player in the AI and semiconductor industries. With its continued focus on innovation and meeting market demand, Nvidia is expected to maintain its growth trajectory in the near future.

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https://nypost.com/2024/05/22/business/nvidia-shares-jump-after-ai-chip-maker-unveils-stock-split-rosy-sales-forecast/