Nvidia shares spike 26% on a huge forecast beat driven by A.I. chip demand

Nvidia reported its Q1 earnings for 2024 on Wednesday. This was out with a strong forecast of a share increase of 26% which is more than expected.
Based on Refinitiv consensus estimates, the company did as follows:
● As expected, earnings per share were $1.09, adjusted, compared with 92 cents
● The company generated $7.19 billion in revenue, compared with $6.52 billion expected

Nvidia mentioned that they were expecting sales of $11 billion.
Wall Street estimated $7.15 billion in the current quarter, which is more than 50% higher.
Nvidia stocks increased by 109% so far in 2023.

As a result, Nvidia’s data center group reported sales of $4.28 billion, up 14% from last year.

GPU chips from Nvidia are used by cloud vendors, as well as by consumer internet companies, to train and deploy generative AI applications such as OpenAI’s ChatGPT.

Nvidia’s data center business performed well, indicating that AI chips are increasingly important for companies that use many servers.

However, their gaming division, which sells graphics cards for PCs, experienced a significant decline in revenue.

The drop was attributed to a slower economy and the launch of new gaming GPUs. On the other hand, Nvidia’s automotive division, which develops chips and software for self-driving cars, grew by 114% compared to the previous year, but its sales remain relatively small.

For the same period last year, the company had a net income of $1.62 billion, or 64 cents per share, compared to $2.04 billion, or 82 cents per share, this quarter.

Overall, Nvidia’s sales decreased by 13% from $8.29 billion a year ago.

- Published By Team Nation Press News