Nvidia has defied expectations yet again, reporting fourth fiscal quarter earnings that soared above Wall Street’s projections.
The semiconductor giant not only surpassed forecasts for earnings and sales but also delivered a bold outlook for the current quarter, exceeding even the most optimistic predictions for revenue growth.
Following this announcement, Nvidia’s shares surged approximately 10% in extended trading, signaling resounding confidence from investors.
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The figures paint a vivid picture of Nvidia’s outstanding performance: Adjusted earnings per share stood at an impressive $5.16, surpassing the $4.64 expected by analysts. Revenue reached an astounding $22.10 billion, comfortably surpassing the projected $20.62 billion. Looking ahead, Nvidia anticipates revenue of $24.0 billion for the current quarter, eclipsing the $22.17 billion anticipated by analysts.
At the core of Nvidia’s success lies its pivotal role in the technology industry’s fervor for large artificial intelligence (AI) models. The company’s graphics processors for servers have become indispensable in the development of these models, positioning Nvidia as the primary beneficiary of this trend.
“Strong demand was driven by enterprise software and consumer internet applications, and multiple industry verticals including automotive, financial services and health care,” the company said in commentary provided to investors.
Addressing concerns about sustaining this remarkable growth trajectory, Nvidia’s CEO Jensen Huang expressed unwavering confidence in the company’s future prospects. He highlighted the enduring demand for Nvidia’s GPUs, fueled by the proliferation of generative AI and a broader industry shift towards accelerators over central processors.
Huang told to analysts, “Fundamentally, the conditions are excellent for continued growth in 2025 and beyond…Demand for the company’s GPUs will remain high due to generative AI and an industry-wide shift away from central processors to the accelerators that Nvidia makes.”
The latest financial report denotes Nvidia’s staggering ascent, with net income skyrocketing to $12.29 billion, marking a remarkable 769% increase compared to the previous year. Total revenue surged by 265%, primarily driven by robust sales of AI chips for servers, notably the highly sought-after “Hopper” chips like the H100.
Nvidia’s Data Center business, now the cornerstone of its revenue stream, witnessed a remarkable 409% increase to $18.40 billion. This surge was propelled by robust demand across various sectors, including enterprise software, consumer internet applications, automotive, financial services, and healthcare.
Addressing the impact of recent U.S. restrictions on exporting advanced AI semiconductors to China, Huang noted, “We understood what the restrictions are, reconfigured our products in a way that is not software hackable in any way, and that took some time so we reset our product offering to China. Now we’re sampling to customers in China.”
Chief Financial Officer Colette Kress acknowledged the persistent supply constraints, especially with the impending launch of its next-generation chip, the B100.
“We are delighted that supply of Hopper architecture products is improving,” Kress said on a call with analysts. “Demand for Hopper remains very strong. We can expect our next-generation products to be supply constrained as demand far exceeds supply.”
“Whenever we have new products, as you know, it ramps from zero to a very large number and you can’t do that overnight,” Kress added.
Meanwhile, Nvidia’s gaming business, although up 56% year over year to $2.87 billion, pales in comparison to the meteoric rise of its data center segment. Nevertheless, the company’s diverse portfolio, including its automotive business and OEM ventures, demonstrates resilience and potential for future growth. It rose 7% to $90 million while business making graphics hardware for professional applications rose 105% to $463 million.