After Wednesday's trading hours Eastern Time, US technology giant Nvidia released its latest stronger than expected financial report in all aspects. This financial report indicates that the demand for artificial intelligence from the outside world is much stronger than expected, and also drives Nvidia's stock price to rise by over 7% after hours.
NVIDIA founder and CEO Huang Renxun said, "Accelerating computing and generative artificial intelligence have reached the tipping point. Demand from companies, industries, and countries around the world is soaring."
Nvidia showcases the "perfect transcript"
According to the financial report, in the fourth quarter of the 2024 fiscal year ending on January 28, Nvidia
The quarterly revenue reached a record breaking $22.1 billion, a 22% increase from the third quarter and a 265% increase from the same period last year, better than Wall Street analysts' expectations of $20.45 billion;
The diluted GAAP profit per share was $4.93, a month on month increase of 33% and a year-on-year increase of 765%, better than analyst expectations of $4.6;
The annual revenue was 60.9 billion US dollars, a year-on-year increase of 126%, reaching a historic high.
For the first quarter of fiscal year 2025, Nvidia predicts that,
The expected revenue is 24 billion US dollars, with a fluctuation of 2%, stronger than the analyst's expected 21.8 billion US dollars;
The GAAP and non GAAP gross profit margins are expected to be 76.3% and 77.0% respectively, with a fluctuation of 50 basis points.
Colette Kress, Chief Financial Officer of Nvidia, stated in a conference call with analysts after the report was released that the company currently states that demand for its advanced artificial intelligence chips continues to "exceed supply.". "Building and deploying artificial intelligence solutions has reached almost every industry."
Adam Sarhan, founder of 50 Park Investments, commented:
"This is another explosive quarter. This is very optimistic for stock investors, and Nvidia has also shown us the development prospects of artificial intelligence. More importantly, the company has also shown us that excitement about artificial intelligence can be translated into actual returns. This is very strong, and they continue to exceed Wall Street's predictions."
Data center growth is stronger than expected
From a departmental perspective, under the demand for artificial intelligence, data centers are clearly the biggest driving force behind Nvidia's soaring performance. The department's fourth quarter revenue reached a record breaking $18.4 billion, stronger than analyst expectations of $17.2 billion and accounting for 83% of Nvidia's total revenue.
The department's revenue in the fourth quarter increased by 27% month on month and 409% year-on-year. The annual revenue increased by 217%, reaching a record breaking $47.5 billion.
NVIDIA CEO Huang Renxun stated:
Our data center platform is driven by increasingly diverse drivers - data processing, training and reasoning needs from large cloud service providers and GPU professional providers, as well as enterprise software and consumer Internet companies. The vertical industries, led by the automotive, financial services, and healthcare industries, have reached a level of billions of dollars.
However, Nvidia's CFO Kress also acknowledged that due to restrictions in the United States, data center revenue from China decreased "significantly" in the fourth quarter.
Nvidia's gaming division's fourth quarter revenue was $2.9 billion, unchanged from the previous quarter and a 56% year-on-year increase. The annual revenue increased by 15% to reach 10.4 billion US dollars.
The revenue of the professional visualization department in the fourth quarter was 463 million US dollars, an increase of 11% month on month and 105% year-on-year. The annual revenue increased by 1% to reach 1.6 billion US dollars.
The fourth quarter revenue of the automotive department was 281 million US dollars, an increase of 8% month on month and a decrease of 4% year-on-year. The annual revenue increased by 21% to 1.1 billion US dollars.
"NVIDIA RTX was launched nearly six years ago and is now a massive PC platform for generating artificial intelligence, loved by 100 million players and creators. In the coming year, we will usher in a significant new product cycle and outstanding innovation to help drive our industry forward. Please join us at next month's GTC conference, where our rich ecosystem will reveal an exciting future," said Huang Renxun.
According to Nvidia's official WeChat account, Nvidia announced that it will hold the GTC 2024 conference from March 18th to 21st at the San Jose Convention Center. At that time, Huang Renxun will release the latest breakthrough achievements in the fields of accelerated computing, generative AI, and robotics.
The market finally breathed a sigh of relief
From the reaction of the US stock market, it is evident that Nvidia's strong financial report has eased the concerns of market investors. On the eve of the financial report, Nvidia's stock price had fallen for four consecutive trading days, and after the report was released, Nvidia's stock price rose by over 10% after the market. If the increase is maintained until the opening, the company's market value will increase by $160 billion.
NVIDIA's stock price rose after hours
As of the time of writing, NVIDIA's stock price rose 7.5% after trading, its main competitor AMD's stock price rose 2.6% after trading, and Intel's stock price rose 0.57% after trading.
Kim Forrest, Chief Investment Officer of Bokeh Capital Partners LLC, stated:
"Over the past 11 months, Nvidia has been a driving force in the market, and the market has been moving with Nvidia. It seems that the results are already good enough - not a huge positive or negative surprise. It does confirm the claim that artificial intelligence will continue to be strong in the foreseeable future. This claim already supported the market last year, why can't this be the case this year?"
Thomas Martin, Senior Portfolio Manager at Global Investments, also stated:
Nvidia's revenue performance is so outstanding, and its performance guidance for this quarter has also improved. However, it is still growing and remains a leader in the field of artificial intelligence. Do you really want to sell it? Everyone, including me, is holding their breath and wondering what will happen to this report. Nvidia's products and growth have clearly been facing strong demand. To some extent, Nvidia can continue to achieve this, which is the company's bottom line, and its stock price needs to reflect this new information