Nvidia recently announced a monumentally successful earnings report, which saw a 628% profit increase and 268% revenue growth, which in turn increased its stocks by 4%.
For the three months ending April 30, Nvidia recorded $26 billion in sales and $6.12 earnings per share. According to sources, analysts had projected adjusted EPS of $5.65 on revenue of $24.69 billion. Nvidia projects revenue for the current quarter of $28 billion, give or take 2%.
That exceeds economists' $26.6 billion projection. In the same quarter last year, the business generated adjusted EPS of $1.09 on revenue of $7.19 billion. During Wednesday's extended trading, Nvidia's stock increased by as much as 4%.
Nvidia's AI-intensive data center division, which generated $22.6 billion in revenue last quarter-a 427% year-over-year boost and an astounding 20 times higher than the $1.1 billion that the division brought in in 2020-is the driving force behind the company's financial growth over the past year.
Additionally, Nvidia disclosed that on June 7th, it will split its shares 10-for-1, keeping the company's entire valuation intact and lowering the price of each share from approximately $950 to $95-a move that will make complete shares more accessible to employees and investors.
According to CFO Colette Kress's statement, large cloud providers contributed about 45% of the company's data center revenue, even though the use of Nvidia processors by non-hyper scalers is increasing.
86% of Nvidia's total sales for the quarter came from its Data Center division, which saw revenue grow 427% year over year to $22.6 billion.
However, Kress noted that the company's revenue from China decreased dramatically during the quarter because it was compelled to stop shipping its most potent chips to that nation.
Furthermore, she stated that she believes the market in the area will continue to be extremely competitive. Nvidia's gaming division, which was previously its most significant business, made $2.6 billion.
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Nvidia Gaming to Nvidia AI
With its once-basic video game industry entering a slump, Nvidia rose to become a $2 trillion firm. Sales for Nvidia's gaming division are almost 25% lower than they were two years ago, making up only 10% of total revenues in the most recent quarter.
According to Forbes, this is a long cry from the over 40% gaming revenue mix that Nvidia enjoyed in each of the first calendar quarters from 2020 to 2022.
Sources imply that Nvidia has focused more on providing AI-oriented GPUs to high-end corporate clients and less on the less expensive direct-to-consumer graphics processing units (GPUs) frequently sought by gamers.
The AI Boom for Other Brands
The AI wave continues to be felt across numerous industries. In late April, Samsung announced a surge in net income worth 6.62 trillion won or $4.8 billion.
In the March quarter, the world's largest memory chip manufacturer reported net profits of 6.62 trillion won ($4.8 billion), more than four times its earnings from the previous year.
As per Samsung's report, the company's revenue increased by about 13% to 71.9 trillion won ($52 billion) due to the high demand for its flagship Galaxy S24 handsets and growing memory chip costs.
Periodically, the chip market has declined because of the COVID-19 pandemic and challenges with international trade.
The semiconductor division of the corporation nonetheless generated operating earnings of 1.91 trillion won ($1.38 billion). This is the first quarterly profit for the division since 2022's fourth quarter.
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(Photo: Tech Times)
