Nvidia Reports Record Quarter, Shares Rise After Hours
Listen to the story
Nvidia, the American technology company known for making advanced computer chips, has reported another record-breaking quarter. Both its revenue and profit reached new highs, continuing a strong trend for the company.
Following the announcement, Nvidia's share price rose by more than 4% during after-hours trading. This is the period when stocks continue to be traded after the official market has closed for the day.
Despite the impressive numbers, Wall Street's reaction was described as cool or reserved. This suggests that investors may have already expected strong results, or that other factors are influencing the market.
Jim Cramer, a well-known financial analyst and television host, called it a 'monumental day.' He suggested that Nvidia's results could move markets more broadly, given the company's huge influence on the technology sector.
Nvidia has become one of the world's most valuable companies, largely thanks to demand for its chips, which are used in artificial intelligence systems. Because of its size and importance, Nvidia's quarterly earnings are closely watched by investors around the globe. Strong or weak results from the company can affect not only its own stock but also the broader technology market and stock indices.
While the exact figures for revenue and profit were not detailed, the fact that both set new records highlights Nvidia's continued growth. The muted response from Wall Street, however, shows that even excellent results don't always lead to a euphoric market reaction, especially when expectations were already very high.
Vocabulary10 words
- revenue
- all the money a company earns from sales
- profit
- the money left after a company pays its costs
- share price
- the cost of one small part of a company
- after-hours trading
- buying and selling stocks after the market closes
- Wall Street
- a name for the US stock market and its investors
- analyst
- a person who studies markets and companies for a living
- artificial intelligence
- computer systems that can learn and act smart
- indices
- numbers that show how a group of stocks is doing
- quarter
- a three-month period used to report company results
- investors
- people who put money into companies hoping to earn more
Quiz
Answer key
1. Record revenue and profit 2. With a cool or reserved response 3. Jim Cramer
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
Nvidia, the American technology company known for making advanced computer chips, has reported another _____ quarter. Both its revenue and _____ reached new highs.
Following the announcement, Nvidia's _____ rose by more than 4% during _____ trading.
Despite the impressive numbers, _____'s reaction was described as cool or reserved.
Jim Cramer, a well-known financial _____ and television host, called it a 'monumental day.'
Nvidia has become one of the world's most valuable companies, largely thanks to demand for its chips, which are used in _____ systems.
Strong or weak results from the company can affect not only its own stock but also the broader technology market and stock _____.
Discussion questions
- Why do you think investors already expected strong results from Nvidia?
- What role does artificial intelligence play in Nvidia's success?
- Why might a company's stock rise even when the broader market reaction is muted?
- Do you follow news about big tech companies like Nvidia? Why or why not?