Before its anticipated earnings report, which was expected to have an impact, on the tech stock market and AI sector investors approached NVIDIA Corporation cautiously. This caution was reflected in drops in the company’s share prices. However, NVIDIA’s fourth-quarter earnings report again confirmed its leading position in the field of intelligence.
The company reported $22 billion in revenue and $5.16 in diluted GAAP earnings per share surpassing analysts’ predictions of $20.6 billion in revenue and $4.64 in EPS. This outstanding performance exceeded optimistic expectations driving NVIDIA’s stock to achieve double-digit percentage gains this year.
More About NVIDIA’s Profit Growth
The latest quarterly results underscore NVIDIA’s growth trajectory which has been consistent since the beginning of the year. Notably, the company saw a 769% increase in bottom line profit generating $12.3 billion in GAAP income during the period – marking its third consecutive quarter of record-breaking profit and revenue. The main catalyst for this growth was NVIDIA’s Data Center division, which reported $18.4 billion in revenue – a 409% growth compared to the previous year.
While aftermarket trading showed enthusiasm for NVIDIA’s performance there were results, from its Gaming division. Despite a 56% increase in Gaming sales the sequential numbers stayed flat. NVIDIA credited the boost in Gaming revenue to sales to partners after inventory adjustments and growing demand.
The company’s continued triumph in the Data Center sector driven by the use of its Hopper GPU in diverse AI applications like language models and recommendation systems played a role, in its success. Moreover, NVIDIA’s upbeat guidance for the next quarter, projecting revenue potential of up to $24 billion, further bolstered investor confidence.
In response to the impressive earnings report and outlook, NVIDIA’s shares surged by 10% in aftermarket trading, reflecting Wall Street’s positive reception of the results and future prospects.
FAQs
<strong>What was company's revenue?</strong>
The company made a revenue of $22 billion.
