In today's fourth-quarter earnings report, Nvidia reported earnings and sales that beat Wall Street expectations, sending its stock up about 10% in after-hours trading. CNBC reports: Here's how the company reported compared to Wall Street expectations for the quarter ending in January, based on an analyst survey by LSEG (formerly Refinitiv).
Earnings per share: Adjusted $5.16 vs. expected $4.64
Revenue: $22.10 billion vs. expected $20.62 billion
Nvidia said it expects revenue for the current quarter to be $24 billion. Analysts polled by LSEG expected earnings of $5.00 per share on revenue of $22.17 billion. On a call with analysts, Nvidia CEO Jensen Huang addressed investor concerns that the company won't be able to maintain this growth and revenue level throughout the year. “Basically the conditions are great for continued growth” beyond 2025, Huang told analysts. He said demand for the company's GPUs will remain high due to generative AI and an industry-wide shift from central processors to accelerators, which he says are manufactured by Nvidia.
Nvidia reported a 769% increase in net income for the quarter to $12.29 billion, or $4.93 per share, compared to $1.41 billion, or 57 cents per share, last year. Nvidia announced that its total revenue increased 265% year-over-year, based on strong sales of its server AI chips, particularly its “hopper” chips such as the H100. “Enterprise software and consumer internet applications, as well as multiple industries including automotive, financial services and healthcare, drove strong demand,” the company said in comments provided to investors. These sales are reported in the company's data center business and currently account for the majority of Nvidia's revenue. Data center sales increased 409% to $18.4 billion. More than half of the company's data center sales went to major cloud providers. […]
The company's gaming business, which includes graphics cards for laptops and PCs, rose 56% year over year to $2.87 billion. Before AI chips became popular, graphics cards for gaming were his Nvidia's main business, and some of Nvidia's graphics cards can be used for AI. Nvidia's small business hasn't seen such rapid growth. Automotive sales fell 4% to $281 million, while other businesses, including OEM and crypto chips, rose 7% to $90 million. Nvidia's business, which makes graphics hardware for professional applications, grew 105% to $463 million.
