Nvidia has published a report for the first quarter of fiscal year 2024. Against the backdrop of growing demand for AI chips, profit was higher than predicted, writes CNBC.
For the reporting period, the company’s revenue amounted to $7.19 billion against the expected $6.52 billion. Earnings per share adjusted from $0.92 to $1.09.
The Data Center Products Division earned $4.28 billion against a $3.9 billion forecast, up 14% from a year earlier.
Nvidia said that the profit was provided by the demand for graphics chips from cloud service providers. Also, large companies were interested in processors, using video accelerators for training and deploying generative AI technologies.
Nvidia’s gaming division, which includes the production of video cards for PCs, reported a drop in revenue by 38% to $2.24 billion against expectations of $1.98 billion. The company explained this by the macroeconomic situation, as well as increasing the line of consumer graphics processors.
Nvidia’s automotive division, including chips and software for developing drones, earned about $300 million. In annual terms, the growth was 114%.
Net profit for the quarter reached $2.04 billion ($0.82 per share) compared to $1.62 billion ($0.64) in the same period last year. Total sales fell 13%.
In the current quarter, Nvidia plans to earn $11 billion plus or minus 2%. This is 50% more than the forecast of Wall Street analysts.
Amid the release of the report, the company’s shares soared in price by 26% in premarket trading. If the trend continues until the opening of the exchange, Nvidia will break Apple’s record for one-day growth in market value.
In 2023, the growth of the chipmaker’s shares exceeded 100%.
Recall that in March, Nvidia CTO Michael Kagan questioned the value of cryptocurrencies.
In April, the chipmaker released a tool for creating secure AI models.
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Nvidia has published a report for the first quarter of fiscal year 2024. Against the backdrop of growing demand for AI chips, profit was higher than predicted, writes CNBC.
For the reporting period, the company’s revenue amounted to $7.19 billion against the expected $6.52 billion. Earnings per share adjusted from $0.92 to $1.09.
The Data Center Products Division earned $4.28 billion against a $3.9 billion forecast, up 14% from a year earlier.
Nvidia said that the profit was provided by the demand for graphics chips from cloud service providers. Also, large companies were interested in processors, using video accelerators for training and deploying generative AI technologies.
Nvidia’s gaming division, which includes the production of video cards for PCs, reported a drop in revenue by 38% to $2.24 billion against expectations of $1.98 billion. The company explained this by the macroeconomic situation, as well as increasing the line of consumer graphics processors.
Nvidia’s automotive division, including chips and software for developing drones, earned about $300 million. In annual terms, the growth was 114%.
Net profit for the quarter reached $2.04 billion ($0.82 per share) compared to $1.62 billion ($0.64) in the same period last year. Total sales fell 13%.
In the current quarter, Nvidia plans to earn $11 billion plus or minus 2%. This is 50% more than the forecast of Wall Street analysts.
Amid the release of the report, the company’s shares soared in price by 26% in premarket trading. If the trend continues until the opening of the exchange, Nvidia will break Apple’s record for one-day growth in market value.
In 2023, the growth of the chipmaker’s shares exceeded 100%.
Recall that in March, Nvidia CTO Michael Kagan questioned the value of cryptocurrencies.
In April, the chipmaker released a tool for creating secure AI models.
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