Nvidia recently reported its fourth fiscal quarter earnings, surprising Wall Street analysts with earnings and sales that exceeded expectations. The company’s earnings per share came in at $5.16, adjusted, compared to the $4.64 that was expected. Additionally, the revenue was reported at $22.10 billion, surpassing the expected $20.62 billion. This strong performance led to Nvidia’s shares rising by about 10% in extended trading.
Despite heightened expectations for significant growth, Nvidia remains optimistic about its future revenue projections. The company stated that it anticipates $24.0 billion in sales in the current quarter, a figure that exceeded the expectations of analysts, who were predicting $5.00 per share on $22.17 billion in sales. The positive outlook is attributed to Nvidia being at the forefront of the trend towards large artificial intelligence models in the technology industry.
Nvidia’s CEO, Jensen Huang, addressed concerns about the company’s ability to sustain its growth trajectory in a recent call with analysts. He reassured them by stating that the conditions are conducive to continued growth in 2025 and beyond. Huang emphasized the high demand for Nvidia’s GPUs, driven by generative AI and the industry’s shift towards accelerators that the company specializes in developing.
During the quarter, Nvidia reported a net income of $12.29 billion, translating to $4.93 per share, marking a significant increase of 769% compared to the previous year. The company’s total revenue also witnessed a remarkable surge of 265% year-over-year, with data center sales playing a pivotal role in driving this growth. Data center sales, which accounted for the majority of Nvidia’s revenue, surged by 409% to $18.40 billion.
Despite its strong performance, Nvidia faced challenges in its data center revenue due to restrictions on exporting advanced AI semiconductors to China. However, the company swiftly adapted to these restrictions, reconfiguring its products to comply with the regulations. Nvidia’s Chief Financial Officer, Colette Kress, highlighted that while there have been improvements in the supply of AI GPUs, certain products, like the next-generation chip B100, are expected to face supply constraints.
Nvidia’s gaming business, historically a significant revenue driver, saw a more modest growth of 56% year over year, reaching $2.87 billion. However, the company’s smaller businesses, such as its automotive division and OEM segment, experienced varied performance. The automotive business declined by 4% to $281 million, while the OEM and other business, including crypto chips, saw a 7% increase to $90 million. On the other hand, Nvidia’s graphics hardware business for professional applications witnessed a substantial rise of 105% to $463 million.
Nvidia’s fourth fiscal quarter earnings reflect a robust performance that exceeded expectations. The company’s ability to navigate challenges, capitalize on growth opportunities, and diversify its business lines underscores its resilience in the dynamic technology landscape. With a positive outlook for future growth, Nvidia continues to be a key player in the era of artificial intelligence and data processing.
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