Nvidia posts revenue up 265% on booming AI business

Nvidia
reported

fourth
fiscal
quarter
earnings
that
beat
Wall
Street’s
forecast
for
earnings
and
sales,
and
said
revenue
during
the
current
quarter
would
be
better
than
expected,
even
against
elevated
expectations
for
massive
growth.

Nvidia
shares
rose
about
10%
in
extended
trading.

Here’s
what
the
company
reported
compared
with
what
Wall
Street
was
expecting
for
the
quarter
ending
in
January,
based
on
a
survey
of
analysts
by
LSEG,
formerly
known
as
Refinitiv:

• 
  Earnings
  per
  share:
  $5.16
  adjusted
  vs.
  $4.64
  expected
• 
  Revenue:
  $22.10
  billion
  vs.
  $20.62
  billion
  expected

Nvidia
said
it
expected
$24.0
billion
in
sales
in
the
current
quarter.
Analysts
polled
by
LSEG
were
looking
for
$5.00
per
share
on
$22.17
billion
in
sales. 

Nvidia
has
been
the
primary
beneficiary
of
the
recent
technology
industry
obsession
with
large
artificial
intelligence
models,
which
are
developed
on
the
company’s
pricey
graphics
processors
for
servers.

Nvidia
CEO
Jensen
Huang
addressed
investor
fears
that
the
company
may
not
be
able
to
keep
up
this
growth
or
level
of
sales
for
the
whole
year
on
a
call
with
analysts.

“Fundamentally,
the
conditions
are
excellent
for
continued
growth”
in
2025
and
beyond,
Huang
told
analysts.
He
says
demand
for
the
company’s
GPUs
will
remain
high
due
to
generative
AI
and
an
industry-wide
shift
away
from
central
processors
to
the
accelerators
that
Nvidia
makes.

Nvidia
reported
$12.29
billion
in
net
income
during
the
quarter,
or
$4.93
per
share,
up
769%
versus
last
year’s
$1.41
billion
or
57
cents
per
share. 

Nvidia’s
total
revenue
rose
265%
from
a
year
ago,
based
on
strong
sales
for
AI
chips
for
servers,
particularly
the
company’s
“Hopper”
chips
such
as
the
H100,
it
said.

“Strong
demand
was
driven
by
enterprise
software
and
consumer
internet
applications,
and
multiple
industry
verticals
including
automotive,
financial
services
and
health
care,”
the
company
said
in
commentary
provided
to
investors.

Those
sales
are
reported
in
the
company’s
Data
Center
business,
which
now
comprises
the
majority
of
Nvidia’s
revenue.
Data
center
sales
were
up
409%
to
$18.40
billion.
Over
half
the
company’s
data
center
sales
went
to
large
cloud
providers.

Nvidia
said
its
data
center
revenue
was
hurt
by

recent
U.S.
restrictions
on
exporting
advanced
AI
semiconductors
to
China.

“We
understood
what
the
restrictions
are,
reconfigured
our
products
in
a
way
that
is
not
software
hackable
in
any
way,
and
that
took
some
time
so
we
reset
our
product
offering
to
China,”
Huang
said.
“Now
we’re
sampling
to
customers
in
China.”

Nvidia
Chief
Financial
Officer
Colette
Kress
said
that
while
the
company
had
improved
supply
of
its
AI
GPUs,
it
still
expected
them
to
be
in
short
supply,
especially
the
next-generation
chip,
called
B100,
expected
to
ship
later
this
year.

“We
are
delighted
that
supply
of
Hopper
architecture
products
is
improving,”
Kress
said
on
a
call
with
analysts.
“Demand
for
Hopper
remains
very
strong.
We
can
expect
our
next-generation
products
to
be
supply
constrained
as
demand
far
exceeds
supply.”

“Whenever
we
have
new
products,
as
you
know,
it
ramps
from
zero
to
a
very
large
number
and
you
can’t
do
that
overnight,”
Huang
said.

The
company’s
gaming
business,
which
includes
graphics
cards
for
laptops
and
PCs,
was
merely
up
56%
year
over
year
to
$2.87
billion.
Graphics
cards
for
gaming
used
to
be
Nvidia’s
primary
business
before
its
AI
chips
started
taking
off,
and
some
of
Nvidia’s
graphics
cards
can
be
used
for
AI.

Nvidia’s
smaller
businesses
did
not
show
the
same
meteoric
growth.
Its
automotive
business
declined
4%
to
$281
million
in
sales,
and
its
OEM
and
other
business,
which
includes
crypto
chips,
rose
7%
to
$90
million.
Nvidia’s
business
making
graphics
hardware
for
professional
applications
rose
105%
to
$463
million.