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Nvidia (NVDA) Q1 2024 Earnings Report

by SuperiorInvest

Nvidia co-founder and CEO Jensen Huang attends an event during the annual Computex computer show in Taipei.

Tyrone Siu | Reuters

Nvidia reported Fiscal 2024 first-quarter earnings on Wednesday came with a stronger-than-expected forecast, sending shares up 19% in extended trading.

Here’s how the company fared against Refinitiv consensus estimates for the quarter ending in April:

  • EPS: $1.09, adjusted, vs. $0.92 expected
  • Revenues: $7.19 billion vs. $6.52 billion expected

Nvidia said it expects revenue of about $11 billion, plus or minus 2%, in the current quarter, which far beat Refinitiv’s expectations of $1.06 a share on revenue of $7.15 billion.

Nvidia shares are up 109% so far in 2023, mostly on optimism stemming from the company’s leadership in the AI ​​chip market. Nvidia CEO Jensen Huang said the company is seeing “growing demand” for its data center products.

Nvidia’s data center group reported revenue of $4.28 billion, versus expectations of $3.9 billion, a 14% year-over-year increase. Nvidia said the company’s performance was driven by demand for the company’s GPU chips from cloud companies as well as large consumer Internet companies that use Nvidia chips to train and deploy generative AI applications such as OpenAI’s ChatGPT.

Nvidia’s strong performance in data centers shows that AI chips are increasingly important to cloud providers and other companies that run large numbers of servers.

However, Nvidia’s gaming division, which includes the company’s graphics cards for PC sales, reported revenue of $2.24 billion, versus expectations of $1.98 billion, although overall revenue in the category fell 38% year over year. Nvidia blamed the decline on a slower macroeconomic environment as well as the advent of the company’s latest gaming GPUs.

Nvidia’s automotive division, which includes chips and software for developing self-driving cars, grew 114% year-over-year, but revenue for the quarter remains low at less than $300 million.

Net income for the quarter was $2.04 billion, compared to $1.62 billion in the same period last year. However, Nvidia’s overall sales fell 13% year over year. Nvidia adjusts earnings, excluding gains or losses on investments and a portion of interest expense.

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