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Strong sequential growth was driven by record data center revenue with our gaming and professional visualization platforms emerging from channel inventory corrections. Nvidia provided a revenue forecast for the July quarter way above expectations, citing surging demand for its chips that enable artificial intelligence applications. NVDA) Q revenues of $7.19 billion are still down 13% from Q1 2023, the company saw sequential growth from Q4 2023, and the Q outlook is undeniably good news for shareholders.
It’s been known for some time, and you’ve heard me talk about it, that accelerated computing is a full stack problem but — is full stack challenged. It costs a lot of money to do it because you have to do all the software and everything, and you have to build all the systems and so on and so forth. Let me turn to the outlook for the second quarter of fiscal ’24. Total revenue is expected to be 11 billion, plus or minus 2%. We expect this sequential growth to largely be driven by data center, reflecting a steep increase in demand related to generative AI and large language models. This demand has extended our data center visibility out a few quarters, and we have procured substantially higher supply for the second half of the year.
NVDA: What are Zacks experts saying now?
I’m guessing it’s more of a supply problem at this point. GAAP gross margins was 64.6%, and non-GAAP gross margins were 66.8%. Gross margins have now largely recovered to prior peak levels as we have absorbed higher costs and offset them by innovating and delivering higher-valued products, as well as products incorporating more and more software. Sequentially, GAAP operating expenses were down 3%, and non-GAAP operating expenses were down 1%.
NVDA stock has an IBD Composite Rating of 98 out of 99. And last week, Nvidia announced a collaboration with ServiceNow (NOW) to develop enterprise-grade capabilities in generative AI. Wall Street analysts gushed about Nvidia’s beat-and-raise report. In the first quarter, Nvidia’s data-center sales rose 14% year over year to $4.28 billion.
- Now, let me talk about the bigger picture and why the entire world’s data centers are moving toward accelerated computing.
- Semiconductors are a commodity good, meaning that they are, to a large extent, fungible and their prices highly cyclical.
- And so, we’re — I’m delighted you understand it, and — but we don’t break it out particularly because we think of the whole thing as a computing platform as it should be.
- And perhaps more importantly, you talked about visibility into the second half of the year.
- How do you connect tens of thousands of GPUs if the operating system of the data center, which is the infrastructure, is not insanely great?
And ground — ground to facts, generative AI is emerging from labs and is on its way to industrial applications. As we scale with cloud and internet service providers, we are also building platforms for the world’s largest enterprises. How do you connect tens of thousands of GPUs if the operating system of the data center, which is the infrastructure, is not insanely great? And so, that’s the reason why we’re so obsessed about networking in the company. And one of the great things that we have, we have Mellanox, as you know quite well, was the world’s highest performance and the unambiguous leader in high-performance networking.
Nvidia (NASDAQ: NVDA)
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. The detailed multi-page Analyst report does an even deeper dive on the company’s vital statistics. It also includes an industry comparison table to see how your stock compares to its expanded industry, and the S&P 500. Nvidia’s gross margin rose to 66.2% in the first quarter, its highest level in at least the past four years. Gross margin is a key metric that is calculated as total revenue minus cost of goods sold (COGS). It is usually then divided by total revenue to express it as a percent, allowing for easy comparison between different time periods or companies.
When he is not immersed in investments or gaming he is a purveyor of fine electronic music. Asif also has an irrational love of Cleveland sports. So, our goal really is to drive architecture, to partner deeply in creating new markets and the new applications that we’re doing and provide our customers with the flexibilities to run NVIDIA everywhere, including on-prem.
The first game from this partnership, Gears 5, is now available, with more set to be released in the coming months. There are now over 1,600 games on GeForce NOW, the richest content available on any cloud gaming service. Revenue of 295 million was up 31% sequentially and down 53% year on year. Nvidia’s automotive division, including chips and software to develop self-driving cars, grew 114% year over year, but remains small at under $300 million in sales for the quarter. Nvidia said it expected sales of about $11 billion, plus or minus 2%, in the current quarter, more than 50% higher than Wall Street estimates of $7.15 billion.
What were the latest earnings per share (EPS) for NVIDIA (NASDAQ:NVDA)?
Nvidia CEO Jensen Huang said the company was seeing „surging demand“ for its data center products. NVIDIA just reported the company’s Q earnings results, and it appears to be good news for shareholders. The chip giant reported non-GAAP EPS of $1.09/share above consensus expectations of $0.92/share. Revenue of $7.2 billion also came in above estimates.
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- So, a lot of different questions there, so let me see if I can start, and I’m sure Jensen will have some following-up comments.
- These returns cover a period from January 1, 1988 through May 15, 2023.
- We now expect to increase investments in the business while also delivering operating leverage.
- Because of their size and complexities, these workflows require acceleration.
Some of the largest supercomputers in the world were installed about 1.5 years ago, and now they’re coming online. And so, it’s not unheard of to see a delivery to operations of about a year. And that’s — we’ve taken data centers and supercomputers, and we’ve turned it into products.
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But on our GPUs, the system boards have 35,000 other components. Number one, where are we in terms of driving acceleration into servers to support AI? Capital expenditures are expected to be approximately 300 million to 350 million. Further financial details are included in the CFO commentary and other information available on our IR website. In closing, let me highlight some of the upcoming events. Jensen will give the COMPUTEX keynote address in person in Taipei this coming Monday, May 29th, local time, which will be Sunday evening in the U.S.
Gaming revenue rose 106% YOY, while data center revenue expanded 79% YOY and professional visualization revenue grew 21% YOY. Nvidia’s original equipment manufacturer (OEM) and other revenue saw an increase of 137% YOY, which was primarily driven by the addition of cryptocurrency mining processors. There has been a boom in cryptocurrency trading and mining over the past year, which has contributed to the global semiconductor shortage.
Nvidia shares spike 26% on huge forecast beat driven by A.I. chip demand
Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Net income for the quarter was $2.04 billion, or 82 cents a share, compared with $1.62 billion, or 64 cents, during the year-earlier period. Nvidia’s overall sales fell 13% from $8.29 billion a year ago.
Nobody ever talks about it because it’s hard to understand, but it makes it possible for us to connect tens of thousands of GPUs. And it helped everybody crystallize how to transition from the technology of large language models to a product and service based on a chatbot. The integration of guardrails and alignment systems with reinforcement learning from human feedback, knowledge vector databases for proprietary knowledge, connection to search, all of that came together in a really wonderful way. And it’s — the reason why I call it the iPhone moment, all the technology came together and helped everybody realize what an amazing product it can be and what capabilities it can have. Generative AI is a major new workload for NVIDIA-powered workstation.
These are subject to a number of significant risks and uncertainties, and our actual results may differ materially. All our statements are made as of today, May 24th, 2023, based on information currently available to us. Except as required by law, we assume no obligation to update any such statements. The webcast will be available for replay until the conference call to discuss our financial results for the second quarter of fiscal 2024.
NVIDIA also provided a very rosy Q outlook, with the company now expecting $11 billion in sales. That’s way above analyst Q revenue expectations of $7.2 billion. https://g-markets.net/helpful-articles/trading-the-morning-star-candlestick-pattern/ Guided by large language models, generative AI models can generate amazing content with models to fine-tune, guardrail, align to guiding principles.