NVIDIA The company’s shares rose more than 8% in long-term trading on Wednesday. report Revenue and net income slightly beat Wall Street expectations, but declined year-over-year in both categories. Here are chipmaker performances against Refinitiv’s consensus expectations for the quarter ending January:
- EPS: $0.88, adjusted, expected $0.81
- Earnings: $6.05 billion vs. $6 billion forecast
Nvidia reported GAAP net income of $0.57 per share. Nvidia forecasts first-quarter sales of $6.5 billion, beating Wall Street’s forecast of $6.33 billion.
Both revenue and earnings have fallen from last year’s sales of $1.32 a share and $7.64 billion, but Nvidia is well-positioned to weather an economic slowdown that will hit PC and semiconductor sales. As one of the chip stocks, it is increasingly viewed by investors.
Nvidia’s data center business, which includes chips for AI, continues to grow, with ChatGPT and AI in Microsoft Bing chatbot. Nvidia graphics processors are great for training and running machine learning software.
The stock was up about 45% in 2023 before Wednesday’s earnings report.
Nvidia CEO Jensen Huang said on a conference call with analysts that AI is at an “inflection point,” with companies of all sizes buying Nvidia chips to develop machine learning software. said.
“The versatility and capabilities of generative AI are forcing companies around the world to develop and deploy their AI strategies.
Most of Nvidia’s artificial intelligence GPU sales fall into the company’s data center category. Data center revenue increased 11% on an annual basis to $3.62 billion. The company attributed this growth to US cloud service providers buying more products.
The game’s revenue fell predictably as sales increased significantly over the past few years. The pandemic has prompted gamers to upgrade their systems with new graphics cards from companies such as his Nvidia. Nvidia reports he had $1.83 billion in gaming revenue in the fourth quarter, down 46% from the same period last year. The company said the decline was due to a drop in chip sales to partners due to its current inventory being too high.
Nvidia also said shipments of chips for gaming consoles declined during the fourth quarter. This has also been reported within the Games category. Nvidia has a successful business selling chips to console makers. Nintendo uses Nvidia chips to power the Switch.
Other categories such as professional visualization and automotive chips remain much smaller than the company’s gaming and data center businesses. Nvidia’s professional visualization business for designers reported his $226 million in revenue, down 65% for the year.