Here's 1 Big Reason to Buy Nvidia Stock Hand Over Fist, and It's Not AI
Nvidia's (NASDAQ: NVDA) artificial intelligence (AI)-fueled growth made the chipmaker one of the hottest performers on the stock market in 2023, and the company's results for the second quarter of fiscal 2024 (for the three months ended July 30, 2023) offered confirmation of the market's confidence.
The company's quarterly revenue doubled year over year to $13.5 billion. Its adjusted earnings shot up 429% to $2.70 per share. The company's data center business was central to this terrific growth as it produced a record $10.3 billion in revenue during the quarter, up 171% from the year-ago period.
Such terrific growth was driven by the massive demand for the company's data center graphics processing units (GPUs) that are being deployed to power AI servers. The good part is that Nvidia's AI-driven growth is here to stay. This explains why Nvidia's revenue guidance of $16 billion for the current quarter points toward even stronger year-over-year growth of 171% from just $5.9 billion in the year-ago quarter.
Source Fool.com
