Nvidia co-founder and CEO Jensen Huang attends an event during the annual Computex Computer Expo in Taipei.
Tyrone Siu | Reuters
Nvidia reported first-quarter results for its fiscal year 2024 on Wednesday, with a stronger-than-expected forecast sending shares up 15% in extended trading.
Here’s how the company fared against Refinitiv’s consensus estimates for the quarter ending April:
- PES: $1.09, adjusted, vs. $0.92 expected
- Income: $7.19 billion, vs. $6.52 billion expected
Net income for the quarter was $2.04 billion, compared to $1.61 billion in the same period last year. However, Nvidia’s overall sales fell 13% year over year.
Nvidia said it expected about $11 billion in revenue, far exceeding Refinitiv’s expectations of $1.06 per share on $7.15 billion in sales.
Nvidia stock is up 109% so far in 2023, largely on optimism stemming from the company’s leadership position in the AI chip market.
Nvidia’s data center group reported revenue of $4.28 billion, against an expected $3.9 billion, a year-on-year increase of 14%. Nvidia said the company’s performance was driven by demand for GPU chips from cloud companies as well as large consumer internet companies, which use Nvidia chips to train and deploy generative AI applications such as than OpenAI’s ChatGPT.
However, Nvidia’s gaming division, which includes the company’s graphics cards for PC sales, saw sales of $2.24 billion, against expectations of $1.98 billion, although revenue overall category decreased by 38% on an annual basis. Nvidia blamed a slower macro environment as well as the rise of the company’s latest gaming GPUs for the decline.
Nvidia’s automotive division, including chips and software to develop self-driving cars, was up 114% year-over-year, but still modest with less than $300 million in sales for the quarter.