NVIDIA Corp. (NVDA), a visual computing company, has gained an increase of 5.16% during the aftermarket trading session and consequently is trading at $307.71 at the time of the writing. The increase is attributable to the announcement of quarterly results. On Wednesday, NVDA closed the day at $292.61 after declining 3.12% during the mid-day session.
Why NVDA Stock Increasing?
On Wednesday, NVDA released the financial results for the third quarter of the fiscal year 2022. The quarter ended on 31st October 2021. The company generated revenue of $7.1 billion during the quarter against $4.7 billion for the same quarter of the previous year. The gross profit for the period was $4.6 billion against $2.9 billion for the same period of fiscal 2021. The total operating expenses for the quarter were $1.9 billion against $1.5 billion for the same quarter of the previous year. The net income generated by the company during the period was $2.4 billion (or $0.99 and $0.97 per basic and diluted share respectively) against $1.3 billion (or $0.54 and $0.53 per basic and diluted share respectively) for the same period of the previous year.
Alongside the financial results, NVDA also reported the business highlights of the period. The company added 65 new and updated software development kits as well as introduced tools for developing and deploying large language models. The company also provided new capabilities in the open-source NVIDIA Triton Inference Server software. It announced RTX capabilities coming to blockbuster titles. The company announced new RTX-accelerated AI features in Adobe applications at the Adobe MAX creativity conference, and besides, it enhanced GeForce NOW™ with a new high-performance membership tier providing access to GeForce RTX™ 3080-class gaming.
Jensen Huang, founder and CEO of NVDA, while commenting on the results said that the third quarter was outstanding for the company as the company generated record revenue during the quarter. He further said that the innovation and a diverse business platform us helping and would help the company to achieve a successful financial stature in quarters to come.
Future Outlook for NVDA
During the last three months, NVDA stock has increased more than 40%. The monumental increase is the epitome of the performance of the company. Hence, potential investors should look keenly into the future developments of NVDA stock to make an informed decision regarding their investment.