Nvidia ‘s (NVDA) fiscal year 2024 first-quarter earnings Wednesday far outpaced Wall Street’s expectations. But as strong as the results were, the chipmaker’s guidance for its current quarter was even more robust, driving shares to a new all-time high in afterhours trading. Revenue for the three months ended April 30 fell 13% year-over year, to $7.19 billion, but still came in well ahead of analysts’ forecasts of $6.52 billion, according to the consensus estimate from Refinitiv. Adjusted earnings-per-share (EPS) dropped 20% on an annual basis, to $1.09, though still surpassed predictions for 92 cents per share, Refinitiv data showed. Adjusted gross margin of 66.8% edged out the 66.5% estimate from analysts, according to FactSet. Shares of the semiconductor firm surged nearly 25% in post-market trading Wednesday, to around $381 apiece. The semiconductor firm’s market capitalization gained $220 billion in the extended-hours session, bringing it to around $975 billion. That compares with a current market capitalization of $174 billion for competitor and fellow Club name Advanced Micro Devices (AMD). Bottom line There is no overstating just how impressive this release was. With the stock up more than 100% year-to-date coming into the print, the bar was high. But the reported results easily exceeded even the most bullish expectations. The forward guidance, though — helped by soaring demand for Nvidia’s data center chips, which power generative artificial intelligence (AI) and large language models — was nothing short of jaw-dropping. Nvidia’s technology has become critical to the AI ecosystem, helping to power large language models like OpenAI’s viral ChatGPT. Moreover, the phenomenal sales guidance for the current quarter – one of the strongest versus expectations that we’ve ever seen – is going to have an even greater impact on the bottom line, given management’s gross margin guide was materially above Wall Street models ahead of the earnings release….
Read the full article here
Leave a Reply