Key Highlights
- Nvidia exceeded market forecasts in its fourth-quarter earnings, with revenue skyrocketing to \(22.10 billion and net income soaring to \)12.29 billion.
- The revenue from Nvidia’s data center business, known for providing cloud and AI services, surged to $18.40 billion, marking a five-fold increase from the previous year.
- Despite a four-day decline before the earnings announcement, Nvidia’s stock rose over 7% in after-hours trading.
Nvidia Corp. (NVDA) reported exceptional revenue and earnings for the fiscal fourth quarter, surpassing market expectations, driven by the escalating demand for AI-related products and services.
Following a downward trend in the days leading up to the highly anticipated earnings release, Nvidia’s stock surged by 7.5% to $725.50 around 6:00 p.m. ET.
During the quarter ending Jan. 28, Nvidia’s revenue surged to \(22.10 billion from \)6.05 billion a year ago. Net income also saw a significant increase, reaching \(12.29 billion compared to \)1.41 billion, with diluted earnings per share at $4.93, up from 57 cents in the previous year, surpassing analysts’ projections.
Q4 FY 2024Analyst Estimates for Q4 FY 2024Q4 FY 2023Year-over-year % changeRevenue\(22.10 billion\)20.80 billion \(6.05 billion265%(Diluted) Earnings Per Share\)4.93\(4.25 \)0.57765%Net Income\(12.29 billion\)10.58 billion $1.41 billion769%
The revenue from Nvidia’s data center business spiked to $18.40 billion, a remarkable five-fold increase from the prior year, surpassing expectations.
Nvidia’s CEO, Jensen Huang, highlighted the significant surge in demand globally for accelerated computing and generative AI, especially in various industries such as automotive, finance, and healthcare, with the data center business witnessing diverse growth drivers.
The company’s gross margin for the fourth quarter rose to 76% from 63.3% in the previous year, attributed to the substantial growth in the data center segment, primarily fueled by Nvidia’s Hopper GPU computing platform.
Looking forward, Nvidia anticipates fiscal first-quarter revenue to reach $24 billion, with a slight increase in gross margin compared to the previous quarter.
The positive outlook on artificial intelligence propelled Nvidia’s stock to an all-time high, given its remarkable performance over the past year. The strong earnings not only boosted Nvidia’s stock in extended trading but also uplifted other chipmakers like Advanced Micro Devices (AMD), ARM Holdings (ARM), Broadcom (AVGO), Taiwan Semiconductor (TSM), and Super Micro Computer (SMCI).
UPDATE: This article has been revised post initial publication to incorporate executive comments, additional insights from the earnings report, and updated stock prices.
