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Nvidia shares jump after AI chip maker unveils stock split, rosy sales forecast

Nvidia on Wednesday forecast better-than-expected second-quarter sales and announced a 10-for-1 forward stock split, impressing AI optimism on investors who have already tripled the chipmaker’s market value over the past year.

Shares of the Santa Clara, California-based company rose 4 percent after the bell, to nearly $974.

Shares of leading AI companies are up more than 90% so far this year.


Nvidia announced first-quarter revenue of $26.04 billion, beating expectations of $24.65 billion. Above is CEO Jensen Huang. AFP (via Getty Images)

Demand for Nvidia’s chips is unprecedented as companies spend billions of dollars procuring advanced semiconductors to power data centers that can handle complex AI tasks.

Tech companies including Alphabet, Microsoft and Amazon are competing for limited supplies of Nvidia’s high-performance chips in a bid to dominate AI computing.

Nvidia contract chipmaker Taiwan Semiconductor Manufacturing is also working to ramp up advanced packaging capabilities, a major constraint in the processor supply chain.

The Taiwanese company announced in April that it plans to more than double its advanced packaging capacity this year.

The company expects second-quarter sales to be $28 billion, up or down 2 percent.

Analysts on average had expected sales of $26.66 billion, according to LSEG data.


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Tech companies including Alphabet, Microsoft and Amazon are competing for limited supplies of Nvidia’s high-performance chips in a bid to dominate AI computing. Via Reuters

Nvidia reported first-quarter revenue of $26.04 billion, beating expectations of $24.65 billion.

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