Movers: Boeing, Nvidia, T-Mobile US, Spirit AeroSystems

Scott Peters
24 Aug, 2023
New York City

Nvidia Corp jumped 3.8% to $488.05 after the chipmaker reported sharply higher sales and earnings in its latest quarter. 

Nvidia reported quarterly sales soared 88% to $13.51 billion and net income jumped eight-fold to $6.1 billion from $656 million and diluted earnings per share advanced to $2.48 from 26 cents a year ago. 

Gross margin jumped to 70.1% from 43.5% in the quarter a year ago. 

Nvidia said it will pay its next quarterly cash dividend of4 cents per share on September 28 to all shareholders of record on September 7.

The company's earnings exceeded high expectations of earnings and also forecasted revenue above market expectations. 

During the second quarter of fiscal 2024, NVIDIA returned $3.38 billion to shareholders  through the sale of 7.5 million shares repurchased for $3.28 billion, and cash dividends. 

As of the end of the second quarter, the company had $3.95 billion remaining under its share repurchase authorization. 

On August 21, the Board of Directors approved an additional $25 billion in share repurchases, without expiration. and the company plans to continue share repurchases this fiscal year.

The maker of graphics processing chips benefited from the surge in AI-driven demand for its chips as device makers rushed to release products that can process AI queries. 

The company expected revenue in the current quarter around $16 billion with a band of 2% and gross margin of 71.5% with a band of 50 basis points.  

T-Mobile US Inc declined 1.9% to $133.77 and the company said in an 8-K filing with the SEC that it plans to take a one-time pre-tax charge of $450 million in the third quarter to account for 5,000 job cuts, about 7% of its workforce. 

Boeing Company declined 3.5% to $220.43 after the company said fastener holes on after pressure bulkheads were improperly drilled on some versions of 737 Max jets, this will further delay deliveries of these planes. 

Spirit AeroSystems Holdings Inc plunged 15% to $19.45 after Boeing highlighted manufacturing defects on the fuselage made by the company.