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, with a stronger-than-expected forecast pushing shares up 19% in extended trade.
Here’s how the company did compared to Refinitiv’s consensus estimates for the quarter ended in April:
- EPS: $1.09, adjusted, vs. $0.92 expected
- Income: $7.19 billion, compared to expectations of $6.52 billion
Nvidia said it expected about $11 billion, plus or minus 2%, in revenue for the current quarter, far beating Refinitiv’s expectations of $1.06 a share on $7.15 billion in sales.
Nvidia shares are up 109% year-to-date in 2023, mostly driven by optimism stemming from the company’s leading position in the AI chip market. Nvidia CEO Jensen Huang said the company saw “rising demand” for its data center products.
Nvidia’s data center group reported $4.28 billion in sales, compared with expectations of $3.9 billion, a 14% year-over-year increase. Nvidia said the company’s performance was driven by demand for its GPU chips from cloud companies as well and large consumer internet companies, which 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 becoming increasingly important to cloud providers and other companies that run large amounts of servers.
However, Nvidia’s gaming division, which includes the company’s graphics cards for PC sales, reported $2.24 billion in sales, compared with expectations of $1.98 billion, although total revenue for the category was down 38% year-over-year. Nvidia blamed a slower macroeconomic environment as well as the ramp-up of the company’s latest gaming GPUs for the decline.
Nvidia’s automotive division, including chips and software for developing self-driving cars, grew 114% year over year, but remains small at under $300 million in sales for the quarter.
Net income for the quarter was $2.04 billion, compared to $1.62 billion from the same period last year. However, Nvidia’s total sales fell by 13% year-on-year. Nvidia adjusts earnings, excluding gains or losses from investments and a portion of interest expenses.