Nvidia reported after-hours earnings that beat Wall Street expectations and provided stronger-than-expected guidance for the current quarter, according to CNBC. Nvidia shares fell 3 percent in extended trading as investors had higher expectations.
- Here’s how the company performed against LSEG’s expectations:
Earnings per share: 68 cents adjusted vs. 64 cents
Revenue: $30.04 billion vs. $28.7 billion expected
Nvidia said it expects revenue of about $32.5 billion in the current quarter, compared to the $31.7 billion expected by analysts, according to StreetAccount. That would be an 80% increase on the previous year.
The chip maker’s revenue continues to grow, rising 122% year-over-year in the quarter, after three consecutive periods of more than 200% year-over-year growth.
Net income doubled to $16.6 billion, or 67 cents a share, in the current quarter from $6.18 billion, or 25 cents a share, a year earlier.
Nvidia has been a major beneficiary of the current artificial intelligence boom. Shares of Nvidia are up more than 150% this year after climbing nearly 240% in 2023. Its market cap recently hit $3 trillion, making Nvidia the world’s most valuable public company , although it is now second only to Apple.
Nvidia’s data center revenue, which includes AI processors, rose 154 percent year over year to $26.3 billion, accounting for 88 percent of total sales. It also beat StreetAccount expectations of $25.24 billion.
Not all of these sales are chips. Nvidia said Wednesday that $3.7 billion in revenue came from the company’s networking products.
Most of its business is focused on a handful of cloud service providers and consumer internet companies, including Microsoft, Alphabet, Meta and Tesla. Nvidia chips such as the H100 and H200 are used in most next-generation artificial intelligence applications such as OpenAI’s ChatGPT.
Many customers are waiting for the next generation of AI chips from Nvidia, called Blackwell. Nvidia said it shipped samples of Blackwell chips during the quarter and tweaked the product to make it more efficient.
“In the fourth quarter, we expect to deliver several billion dollars in Blackwell revenue,” wrote Colette Kress, Nvidia’s chief financial officer, in prepared remarks.
However, Nvidia said it expects the current generation chip, called Hopper, to increase total shipments for the next two quarters.
“Demand for Hopper remains strong and the prospect for Blackwell is incredible,” Nvidia CEO Jensen Huang said in a press release.
Nvidia’s gaming business used to be the company’s main focus before the data center started. Gaming revenue rose 16% from last year to $2.9 billion, beating StreetAccount’s estimate of $2.7 billion. The company said this was partly due to increased shipments of PC game cards as well as “SOC gaming consoles”. Nvidia supplies chips for Nintendo consoles.
Nvidia also makes chips for high-end graphic designers as well as cars and robots in smaller segments. The company’s graphics business grew 20% and reported revenue of $454 million. Nvidia reported revenue of $346 million in the automotive and robotics business, compared to expectations of $344.7 million.
Nvidia also said it had agreed to $50 billion in share buybacks.
2024-08-28 20:59:02
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