Nvidia's Stock Up On Demand For AI Chips

Nvidia stock is up more than 14% after the company reported quarterly revenue of $1.94 billion, up 48% year over year. The company also reported $0.79 earnings per share (EPS), up 126% versus the same quarter a year ago.

Nvidia's core gaming business revenue rose by an impressive 49% to $1.03 billion, compared to $687 million from the same quarter last year. The company's automotive business brought in $140 million, up from $113 million the previous year. Sales into data center were stronger than expected at $409 million, up from $143 million in 2016. Nvidia was very bullish on deep learning, artificial intelligence, and its data center business.

CEO Jen-Hsun Huang remarked:

"Our Datacenter GPU computing business nearly tripled from last year, as more of the world's computer scientists engage deep learning. One industry after another is awakening to the power of GPU deep learning and AI, the most important technology force of our time."

Nvidia also gave very strong guidance for the second quarter, calling for $1.95 billion in revenue plus or minus two percent. GAAP and non-GAAP gross margins are expected to be 58.4 percent and 58.6 percent, respectively, plus or minus 50 basis points.