AI chip sales exploded, with a 30% surge in after-hours trading! Nvidia's performance, guidance, and stock price are all "exploding".

Wow, that's insane!

Chip giant Nvidia's financial report has shocked the market, with its stock price soaring nearly 30% to a historic high of over $390 after hours, adding $200 billion to its market value to reach $960 billion, just one step away from becoming the seventh trillion-dollar market value company in the US stock market!

After skyrocketing by 1.3 times AMD (market value of $174.4 billion), nearly 2 times Intel (market value of $121 billion), and 3 times Micron Tech (market value of $73 billion) overnight, Nvidia, which has already risen by 109% this year, has reached a new level and become the fifth largest component stock of the S&P 500 index, continuing to maintain its position as the best-performing stock in the S&P component stocks this year.

Driven by this year's wave of artificial intelligence (AI), Nvidia's first-quarter financial report far exceeded expectations, with the following details:

Nvidia's quarterly revenue was $7.192 billion, down only 13% year-on-year, while analysts expected a decline of 21.5% to $6.52 billion, which is equivalent to the decline in the fourth quarter;

Adjusted earnings per share (EPS) were $1.09, down 20% year-on-year, better than analysts' expected decline of 32%.

Compared with the fact that the year-on-year decline in revenue is almost half of the market's expectations and the decline in the fourth quarter, which is already hardcore enough, what is more surprising to the market is that both of Nvidia's two core businesses, data centers and gaming, have far exceeded expectations, especially the data center business where AI chips are located, which has achieved a historic high in revenue!

The data center revenue for the quarter was $4.28 billion, up 14% year-on-year, about 9.5% higher than analysts' expected revenue of $3.91 billion;

Gaming revenue was $2.24 billion, down 38% year-on-year, but 13.1% higher than analysts' expected revenue of $1.98 billion.

Undoubtedly, the explosion of AI has provided Nvidia's chip sales and prices with a space and stage for skyrocketing.

According to the "Science and Technology Innovation Board Daily", some agents have previously revealed that the price of Nvidia A100 has increased by 37.5% in the past five months, and the price of A800 has increased by 20.0% during the same period. At the same time, Nvidia's GPU delivery cycle has also been extended. Previously, the delivery cycle was about one month, but now it basically requires three months or longer, and some new orders "may not be delivered until December".

After all, GPU is the source of AI computing power training, and Nvidia holds this magic weapon, which is the key to winning in the competition of large AI models.

Nvidia CEO Jensen Huang also said that considering that many companies are deploying large models, "it is expected that AI chips will still grow significantly, and Nvidia has also greatly increased its supply to cope with the surge in demand."

Looking at the gaming side, after experiencing explosive growth during the epidemic period, consumers' spending on electronic products has generally declined. Although Nvidia's first-quarter results are still acceptable, it is still struggling in the slowdown of the entire industry. However, Wall Street is full of confidence in Nvidia, expecting Nvidia to achieve its first growth in gaming business in a year in the second quarter. This will greatly help Nvidia to achieve overall revenue growth again.

More importantly, Nvidia's own guidance for the second quarter is also quite amazing, with revenue expected to increase by nearly 33% year-on-year to around $11 billion, 53.2% higher than analysts' expectations, and expected to create the highest quarterly revenue in the company's history.

Bloomberg even quoted Adam Crisafulli, founder of information platform Vital Knowledge, as saying that Nvidia provided explosive guidance, strongly emphasizing a bullish argument that the company is at the core of a major transformation point in (AI) technology.

With impressive performance and stunning guidance, Nvidia, as a leader, even led a surge in the US AI sector. Okasan Securities also said that the chip industry is expected to recover from the second half of the year, and currently, "Nvidia's performance has increased certainty for this."