Nvidia shatters expectations: Revenue up 265% as AI demand continues

NVIDIA’s Silicon Valley campus, seen here from San Tomas Expressway in Santa Clara
NVIDIA’s Silicon Valley campus, seen here from San Tomas Expressway in Santa Clara Copyright AP Photo
By Piero Cingari
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Nvidia's earnings report exceeded forecasts, with a 22% quarterly and 265% yearly revenue spike to $22.1 billion (€20.46 billion) on the heels of AI-driven growth, driving shares up by 7% post-announcement.

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In a much-anticipated earnings report, Nvidia shattered expectations, delivering a set of results that left analysts and investors astounded by the chipmaker’s staggering financial performance.

The company's quarterly revenue soared to an unprecedented $22.1 billion (€20.46 billion), a 22% increase from the previous quarter and an astonishing 265% rise year-over-year. This figure surpassed the median forecast by Wall Street analysts, which was pegged at $20.395 billion (€18.88 billion).

For the fiscal year 2024, Nvidia's revenue skyrocketed by 126% to $60.9 billion (€56.39 billion). The company's earnings per share (EPS) told a similar success story, with GAAP EPS at $11.93 (€11.05), up 586% from the previous year, and non-GAAP EPS at $12.96 (€12.00), marking a 288% increase.

Nvidia's founder and CEO, Jensen Huang, claimed that "accelerated computing and generative AI have hit the tipping point," signalling a surge in demand across various sectors. This demand is not just limited to large cloud-service providers and GPU-specialised companies but extends to enterprise software, consumer internet companies, and vertical industries such as automotive, financial services, and healthcare, now contributing billions to the AI revolution.

Looking ahead, Nvidia's growth remained robust, indicating that the company's upward trajectory is far from reaching its zenith. The chipmaker anticipated revenues of around $24.0 billion (€22.22 billion) for the current fiscal quarter, with an error margin of 2%, and gross margins expected to be about 77% plus or minus 50 basis points.

The goose that lays golden eggs

The lion's share of Nvidia's financial triumph is attributed to the explosive growth of its AI-driven initiatives within the Data Center platform, which alone generated $18.4 billion (€17.04 billion), witnessing a 27% increase from the third quarter and an astonishing 409% from the preceding year.

Colette Kress, NVIDIA’s Executive Vice President and Chief Financial Officer, explained that the company focuses on markets where its computing platforms can significantly accelerate applications, integrating processors, interconnects, software, algorithms, systems, and services to deliver unmatched value.

Nvidia announced a collaboration with Google, aiming at optimizing NVIDIA’s data center and PC AI platforms for Gemma, Google’s ground-breaking open language models.

Last month, Nvidia partnered with Amgen, a leading biotech firm, to enhance drug discovery and precision medicine through AI-driven data center infrastructure.

The company has also backed the National Artificial Intelligence Research Resource pilot program, which represents a significant stride by the U.S. government towards establishing a collaborative national research infrastructure.

Nvidia stock climbs in US after market

Following the robust earnings report, Nvidia's shares experienced a significant uptick, climbing over 7% in New York's after-market trading. The stock's one-year performance stands impressively at over 225%, with a notable 40% increase since the onset of 2024.

Nvidia's market capitalisation has experienced an exponential surge, expanding by more than $400 billion (€370 billion) since the beginning of the year, elevating its worth to a $1.67 trillion (€1.55 trillion).

Nvidia now ranks sixth in the hierarchy of the world's largest companies, just below Apple, Microsoft, Saudi Aramco, Alphabet and Amazon.

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