Nvidia Delivers Another Strong Quarter

By X-blogger - on February 22, 2024

Nvidia Weekly Chart 2023-2024

Investors have been anxiously awaiting the latest quarterly results from Nvidia, and on Wednesday after U.S. markets closed they got what they’ve been waiting for. And they weren’t disappointed.

The technology company, which has been at the forefront of the hype over AI, reported sales and earnings that beat expectations from the Street, and also forecast better than expected results in the current quarter. The company reported earnings per share of $5.16 adjusted versus $4.64 expected on revenue of $22.1 billion versus $20.62 billion expected.

Nvidia management also forecast $24 billion in sales for the first quarter of 2024, while analysts have been expecting a more modest $22.17 billion.

Nvidia has been one of the prime beneficiaries of the ongoing AI boom, thanks to its cutting edge processors that are being used to train and run the massive large-language models that run AI tools like Chat-GPT.

Nvidia CEO Jensen Huang also assuaged investor fears that growth will soon slow for Nvidia. He said that demand will remain strong through 2025 and beyond thanks to the growth of generative AI throughout much of the business world.

Nvidia’s revenue was up 265% from the same period a year earlier, largely due to the strong sales of its AI chips for use in servers. The majority of Nvidia’s sales now comes from its Data Center business, which saw a 409% increase in revenue for the year. Over half those sales went to the major cloud computing providers.

Nvidia also reported that the shortage of its most powerful chips, the H100, is finally clearing, though it also said it expects to face similar supply constraints when it releases its next generation chip, called the B100, later this year.

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