Nvidia Blows Out Q1 Estimates, Raises Q2 Sales Guidance

NVIDIA Corporation NVDA reported after Thursday's close a record-breaking quarter.

The company reported first-quarter earnings of $2.05, beating estimates by a whopping 60 cents. Sales came in at a record $3.21 billion, a 66 percent year-over-year gain, beating estimates by $320 million

"We had a strong quarter with growth across every platform," said NVIDIA Founder and CEO Jensen Huang. "Our datacenter business achieved another record and gaming remained strong.

"At the heart of our opportunity is the incredible growth of computing demand of AI, just as traditional computing has slowed. The GPU computing approach we have pioneered is ideal for filling this vacuum. And our invention of the Tensor Core GPU has further enhanced our strong position to power the AI era," Huang said.

The company issued strong second-quarter sales guidance of $3.1 billion and is projecting second-quarter adjusted gross margins of 63.5 percent.

Q1 Highlights:

• Gaming revenues were up 68 percent to $1.72 billion
• Data center revenues increased 71 percent
• Professional visualization sales were up 22 percent
• Automotive sales gained 4 percent

Despite the strong release, shares were volatile in after-hours trading. At time of publication, Nvidia's stock was trading around $257, down 1.2 percent.

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