- Nvidia on Wednesday reported first-quarter earnings for fiscal 2024 and posted better-than-expected earnings, driving the stock up 25% in after-hours trading.
- Nvidia CEO Jensen Huang said “demand is skyrocketing” for the company’s data center products.
Nvidia co-founder and CEO Jensen Huang attends an event during Computex, an annual computer show held in Taipei.
Tyrone Siu | Reuters
Nvidia on Wednesday reported first-quarter earnings for fiscal 2024 and posted better-than-expected earnings, driving the stock up 25% in after-hours trading.
Here are the company’s results and Refinitiv’s consensus forecast for the quarter ending April:
- EPS: $1.09 adjusted, $0.92 expected
- Earnings: $7.19 billion vs. expected $6.52 billion
Nvidia expects revenue to be about $11 billion plus or minus 2% for the quarter, well above Refinitiv’s forecast of $1.06 per share on revenue of $7.15 billion. Stated.
Nvidia’s stock price is up 109% to date in 2023, largely due to optimism stemming from the company’s leading position in the AI chip market. Nvidia CEO Jensen Huang said “demand is skyrocketing” for the company’s data center products.
Nvidia’s data center group reported revenue of $4.28 billion, up 14% year-on-year, versus the $3.9 billion forecast. Nvidia said its performance was driven by demand for its GPU chips from cloud companies and large consumer internet companies, which use Nvidia chips to train and deploy generative AI applications like OpenAI’s ChatGPT. Stated.
Nvidia’s strong performance in the data center shows that AI chips are becoming increasingly important to cloud providers and other companies running large numbers of servers.
However, the gaming division, which includes NVIDIA’s graphics cards for PC sales, reported $2.24 billion in sales compared to the expected $1.98 billion, but the division’s overall revenue fell 38% on an annual basis. Decreased. Nvidia blamed the decline on a slowing macroeconomic environment and an increase in the company’s latest gaming GPUs.
Nvidia’s automotive division, which includes chips and software to build self-driving cars, grew 114% year-over-year, but remained small at less than $300 million in revenue in the quarter.
Net income for the quarter was $2.04 billion, compared with $1.62 billion a year ago. However, NVIDIA’s overall revenue fell by 13% year-over-year. Nvidia adjusts earnings to exclude a portion of investment gains and losses and interest expense.
