Nvidia Reports Earnings

Nvidia on Wednesday, November 20, released information about its earnings for the quarter ended October 27.

The mentioned figures exceeded preliminary expectations. Also, the information that was published by Nvidia on Wednesday was evidence that the company continues to move along a growth trajectory, and demand for its powerful artificial intelligence chips remains high. Moreover, the firm has released a forecast for financial performance for the current quarter, which turned out to be better than preliminary expectations.

Nvidia’s revenue for the quarter ended October 27 was fixed at $35.1 billion. This indicator increased by 94% compared to the result for the same period last year. The company’s revenue also rose by 17% relative to the figure recorded in the previous quarter. The LSEG consensus forecast provided that the mentioned indicator for the specified period would be fixed at $33.16 billion.

Adjusted earnings per share amounted to 81 cents. At the same time, the LSEG consensus forecast provided for this indicator at 75 cents.

Nvidia expects its revenue for the current quarter to be about $37.5 billion, plus or minus 2%. The LSEG estimate envisaged that this figure would reach $37.08 billion.

The company’s expected revenue for the current quarter provides for an increase in the corresponding figure by about 70% year-on-year. It is worth noting that in this case, there is a slowdown in the pace of the upward dynamic. In the last quarter of 2023, Nvidia’s revenue showed growth of 265% year-on-year.

The company’s financial performance continues to increase, but the corresponding momentum is weakening. For example, in the last quarter of 2023 and the first two quarters of the current year, Nvidia’s revenue grew by 122%, 262%, and 265%, respectively. However, at the same time, for the three-month period ending on October 27, the increase in the corresponding indicator was less than 100%.

Nvidia continues to be one of the main beneficiaries of the so-called artificial intelligence boom. This year, the company’s market capitalization has crossed the historical mark of $3 trillion. Also, since the beginning of 2024, the value of the firm’s shares has almost tripled.

It is worth noting that most of Nvidia’s revenue was generated by its data center business, which includes sales figures for artificial intelligence processors and related parts. In this case, there is an example of the impact of the AI boom on financial performance. The mentioned Nvidia business generated $30.8 billion in revenue for the quarter ended October 27. This indicator showed an increase of 112% year-on-year. Analysts surveyed by StreetAccount expected that the revenue of the company’s mentioned business for the last quarter would be fixed at $28.82 billion.

Nvidia’s net income for the three-month period ended October 27 amounted to $19.3 billion. For the same period in 2023, this figure was fixed at $9.24 billion.

Nvidia’s gross margin increased to 73.5% over the past quarter.

It is worth noting that many company’s end-customers, such as Microsoft, Oracle, and OpenAI, have started receiving the firm’s next-generation AI chip called Blackwell. Nvidia chief financial officer Colette Kress said on a call with analysts that 13,000 samples of the mentioned microcircuit have been shipped to clients.

Nvidia chief executive officer Jensen Huang, responding to a question about the impact of a potential decision by Donald Trump, who won the US presidential election, to raise tariffs on the company’s business, during a call with analysts said that the firm he heads will comply with any regulation.