SIGGRAPH 2017 Reuters: NVIDIA logo
Nvidia shares rose as high as 8% after the company reported strong second quarter earnings.
As investors digested the results, the shares of the GPU manufacturer saw their early losses reversed by 1%.
Nvidia stated that it expected the semiconductor shortage to continue well into 2022, and is optimistic about Arm's proposed acquisition.
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Nvidia surged up to 8% Thursday after the graphics card manufacturer posted record second-quarter earnings results which exceeded analyst expectations.
According to Nvidia CEO Jensen Huang, the company noticed a surge in demand for its professional visualizations, gaming and data center business units. However, it said that it is having trouble keeping up with the demand due to an ongoing shortage of semiconductors. Jensen Huang, Nvidia CEO, expects that the chip shortage will continue well into 2022.
These are the key numbers
Revenue: $6.51 Billion compared to $6.34 Billion estimates
Adjusted earnings per share: $1.04 compared to estimates of $1.02
The third quarter outlook is $6.80 billion compared to $6.53 billion estimates
Nvidia stated that it expects a decrease in sales of its crypto mining processors as ethereum moves to EIP-35554 which will render the cryptocurrency virtually unmineable. Nvidia also stated that it expected the current chip shortage to continue well into 2022.
Nvidia stated that it is still working through the regulatory process to complete its $40 billion acquisition plan for Arm. This has not been completed due to antitrust concerns.
Colette Kress, Nvidia CFO, stated that although some Arm licensees expressed concern or object to the transaction and that discussions with regulators are taking much longer than originally thought, she is confident in the deal. She also said that regulators should recognize Arm's benefits and those of its licensees.
Wall Street analysts were impressed by the results, which showed that demand is expected to outstrip supply in the near future. Analysts said that while this is a problem in business, it will not limit the stock's upside in near-term.
Nvidia's gains for the year so far this year have increased by 51%, as of Thursday afternoon. Even after the stock split, which was 4-for-1 earlier in the year, Nvidia's stock remains at or near record highs.
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