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Nvidia Earnings, Revenue Beat in Q2 on Data Center Growth

Published 08/19/2020, 04:21 PM
Updated 08/19/2020, 04:21 PM
© Reuters.  NVIDIA Earnings, Revenue Beat in Q2

© Reuters. NVIDIA Earnings, Revenue Beat in Q2

By Yasin Ebrahim

Investing.com - Nvidia (NASDAQ:NVDA) on Wednesday reported second-quarter earnings and revenue that topped expectations, led by growth in its data center division.

Nvidia shares gained 0.83% in after-hours trade following the report.

The company announced earnings per share of $2.18 on revenue of $3.87B. Analysts polled by Investing.com anticipated EPS of $1.98 on revenue of $3.65B.

Nvidia shares are up 106% from the beginning of the year, still down 2.75% from its 52-week high of $499.70 set on August 18. They are outperforming the S&P 500 which is up 4.51% from the start of the year.

The data center business grew 167% to a record $1.75 billion for the quarter year-on-year, helped by the contribution of Mellanox (NASDAQ:MLNX), which was acquired this year and contributed 14% of revenue.

Its gaming division generated second-quarter revenue of $1.65 billion, up 24% from the previous quarter and up 26% from a year earlier.

It was the first time ever that the company's gaming division generated less revenue than the data center business.

Looking ahead, Nvidia guided fiscal third-quarter revenue to rise to $4.40 billion, give or take 2%, with non-GAAP gross margins of 65.5%, plus or minus 50 basis points.

Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com's earnings calendar

Latest comments

The same bs happened with $MSFT , they smashed earnings but ppl sold off ? Crazy
Why red aftermarket? The earnigs were quite good...
Taking profits
Much of the big tech rally is not juatified....
ya definitely not anything to justify the stock price definitely trimming
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