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Nvidia Stock Hits Record on Post-Earnings Surge

Nvidia continues to climb following last week's second-quarter earnings beat.
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Nvidia  (NVDA) - Get NVIDIA Corporation Report shares on Monday surged to a record, propelled by the semiconductor giant's strong earnings results reported last week.

Shares of the Santa Clara, Calif., company climbed 5.4% to $219.52 at last check.

Last week, Nvidia reported fiscal-second-quarter earnings per share nearly quadrupled on 68% higher revenue.

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The company earned 94 cents a share compared with 25 cents in the year-earlier quarter. The latest adjusted earnings were $1.04 a share, up 89% from a year earlier.

Revenue was $6.51 billion compared with $3.87 billion a year earlier.

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A survey of analysts by FactSet was looking for GAAP earnings of 83 cents a share, or an adjusted $1.02 a share, on revenue of $6.33 billion.

Gaming revenue in the quarter was $3.06 billion, up 85% from a year earlier and accounting for 47% of total revenue.

TheStreet's Jim Cramer said that the gaming cycle and developments in the metaverse present major tailwinds to the company going forward.

"The more and more games that are created, the more you want to own this [stock]," Cramer said. "It was a remarkable quarter in a series of remarkable quarters. ... If people listen they will recognize why you pay such a high multiple for such a great company." 

Meanwhile, the U.K.'s Competition and Markets Authority said last week that Nvidia's planned takeover of chipmaker Arm Ltd. raised "serious competition concerns" and called for an in-depth investigation into the $40 billion deal.

The authority said that even though Nvidia has offered remedies that would alleviate some of its concerns, it nonetheless called for a Phase 2 investigation that could delay the proposed transaction for several more months.

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