NVIDIA's Explosive Q2 Earnings Report Sends Multiple Semiconductor, AI-Related Stocks Higher In Sympathy

Shares of several semiconductor and AI-related stocks are trading higher in sympathy with NVIDIA Corp NVDA, which reported strong second-quarter financial results and third-quarter guidance.

What To Know: NVIDIA reported quarterly earnings of $2.70 per share which beat the analyst consensus estimate of $2.09, a 429.41% increase over earnings of 51 cents per share from the same period last year. The company reported quarterly sales of $13.51 billion which beat the analyst consensus estimate of $11.22 billion, a 101.52% increase over sales of $6.70 billion the same period last year.

The company issued third-quarter revenue guidance of $16.00 billion, plus or minus 2%.

NVIDIA made gains in several areas, including data centers, gaming, professional visualization and automotive.

For example, the company announced that the NVIDIA GH200 Grace Hopper Superchip for complex AI and HPC workloads was shipping this quarter. A second-generation version with HBM3e memory is expected to ship in the second quarter of 2024.

"A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI," said Jensen Huang, founder and CEO of NVIDIA.

Among the AI-related stocks that gained in sympathy with NVIDIA in Wednesday's after-hours session were C3.ai Inc AI and Palantir Technologies Inc PLTR. Semiconductor stocks Advanced Micro Devices, Inc. AMD, Marvell Technology Inc. MRVL and Taiwan Semiconductor Mfg. Co. Ltd. TSM also benefited from NVIDIA's earnings report.

Related Link: Splunk Stock Rises After-Hours Following Q2 Earnings, Q3 and FY24 Guidance Above Estimates

NVDA, AI, PLTR, AMD, MRVL, TSM Price Action: At the time of publication in the after-hours session:
• NVDA was up 7.16% at $504.88

• AI was up 4.26% at $33.99

• PLTR was up 3.07% at $15.30

• AMD was up 3.57% at $109.43

• MRVL was up 4.40% at $64.09

• TSM was up 2.21% at $96.30

Photo: Willfried Wende from Pixabay