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Nvidia co-founder and CEO Jensen Huang attends an event during the annual Computex computer exhibition in Taipei.
Tyrone Siu | Reuters
Nvidia reported first-quarter earnings for its fiscal 2024 on Wednesday, with a stronger-than-expected forecast that drove shares up 26% in extended trading.
Here’s how the company did versus Refinitiv consensus estimates for the quarter ending in April:
- EPS: $1.09, adjusted, versus $0.92 expected
- Revenue: $7.19 billion, versus $6.52 billion expected
Nvidia said it expected about $11 billion, plus or minus 2%, in the current quarter, far surpassing Refinitiv expectations of $7.15 billion in sales.
Prior to the after-hours move, Nvidia stock was up 109% so far in 2023, mostly driven by optimism stemming from the company’s leading position in the market for AI chips. Nvidia CEO Jensen Huang said the company was seeing “surging demand” for its data center products.
Nvidia’s datacenter group reported $4.28 billion in sales, versus expectations of $3.9 billion, a 14% annual increase. Nvidia said that the company’s performance was driven by demand for its GPU chips from cloud vendors as well as large consumer internet companies, which use Nvidia chips to train and deploy generative AI applications like OpenAI’s ChatGPT.
Nvidia’s strong performance in data center shows that AI chips are becoming increasingly important for 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 a 38% drop in revenue to $2.24 billion in sales versus expectations of $1.98 billion. Nvidia blamed the decline on a slower macroeconomic environment as well the ramp of the company’s latest GPUs for gaming.
Nvidia’s automotive division, including chips and software to develop self-driving cars, grew 114% on a year-over-year basis, but remains small at under $300 million in sales for the quarter.
Net income for the quarter was $2.04 billion, versus $1.62 billion from the same period last year. Nvidia’s overall sales fell 13% on a year-over-year basis.
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