Nvidia exceeds expectations and shares soar 26%



  • Nvidia reports first-quarter earnings for its fiscal 2024 that beat expectations, fueling a 26% rise in its shares.
  • The company projects sales of approximately $11 billion for the current quarter, more than 50% above Wall Street estimates.
  • Nvidia’s data center group is showing strong performance with a 14% increase in sales, supported by growing demand for its artificial intelligence chips.

Nvidia, the renowned technology company and maker of graphics cards, released its first-quarter fiscal 2024 results on Wednesday, beating estimates and generating a 26% rise in shares in the extended market.

The company reported adjusted earnings per share of $1.09, compared with 92 cents expected based on Refinitiv estimates. In addition, it posted revenue of $7.19 billion, beating expectations of $6.52 billion.

One of the highlights of the report was Nvidia’s projection for the current quarter, where sales of approximately $11 billion are expected, with a 2% margin of error. This represents an increase of more than 50% compared to Wall Street estimates, which stood at $7.15 billion.

Prior to the release of these results, Nvidia’s shares had already risen 109% so far in 2023. This growth has been largely driven by optimism generated by the company’s leading position in the intelligence chip market. artificial. Nvidia CEO Jensen Huang stated that they are experiencing “increasing demand” for their data center products.

Nvidia’s data center group reported sales of $4.28 billion, beating expectations of $3.9 billion and showing a 14% increase over the prior year. This strong performance is driven by demand for its GPU chips from cloud service providers and large internet companies that use Nvidia’s chips to train and deploy generative AI applications like OpenAI’s ChatGPT.

Nvidia’s strong performance in the data center space shows that AI chips are becoming increasingly important to cloud service providers and other companies that operate large numbers of servers.

However, Nvidia’s gaming division reported that “First-quarter revenue was $2.24 billion, down 38% from a year ago and up 22% from the prior quarter.” 

Nvidia’s automotive division, which is responsible for chips and software for the development of autonomous vehicles, saw growth of 114% compared to the previous year, although sales for the quarter remained less than 300 million dollars.

During the quarter, Nvidia posted a net income of $2.04 billion, or 82 cents per share, compared with $1.62 billion, or 64 cents per share, in the same period a year earlier. Nvidia’s total sales experienced a 13% decrease compared to $8.29 billion a year earlier.

In short, Nvidia has exceeded expectations in its fiscal first quarter of 2024, driven by strong performance in the data center market and growing demand for AI chips. Although it has experienced a decline in revenue from its gaming division, growth in other sectors shows great potential for the company. With its leadership in the AI ​​chip industry and its focus on emerging technologies.