Nvidia Corporation, the world’s leading designer of graphics processing units (GPUs) and artificial intelligence (AI) chips, released its fiscal fourth quarter and full year 2024 earnings report on February 22, 2023. The results smashed analysts’ expectations and sent Nvidia’s stock price soaring over 14%, igniting a rally across technology stocks worldwide.
Nvidia’s Financial Performance Exceeds Expectations
For the fourth quarter ending January 28th, 2024, Nvidia reported record revenue of $22.1 billion, representing a 22% increase sequentially and a meteoric 265% surge year-over-year.
Nvidia’s GAAP earnings per share (EPS) hit $4.93 for the quarter, up 33% sequentially and 765% from a year earlier. Non-GAAP EPS registered at $5.16, climbing 28% from the previous quarter and 486% higher than Q4 of fiscal 2023.
Gross margins expanded substantially to 76.0%, reflecting the exceptional strength of Nvidia’s data center and gaming products. Operating income skyrocketed 983% annually to $13.6 billion. Meanwhile, net income rose by 769% year-over-year to reach $12.3 billion.
“AI is at an inflection point, setting up for broad adoption reaching into virtually every industry,” said Nvidia founder and CEO Jensen Huang. He stressed accelerating demand for the company’s accelerated computing platforms and services across cloud computing providers, large enterprises, and startups.
Growth Trajectory Powers Global Tech Rally
Nvidia’s blowout Q4 performance reignited the bull market in technology stocks. The next trading session after earnings saw the tech-dominated Nasdaq Composite Index surge by 2.5%, nearing its record closing high. The S&P 500 jumped 1.8% to an all-time record settlement, with information technology as the best-performing sector.
“Nvidia is key to the AI revolution, and its results confirmed that artificial intelligence adoption is still in early innings,” remarked Dan Morgan, a senior portfolio manager at Synovus Trust.
In the following days, the rally spread worldwide. Japan’s Nikkei 225, driven by gains in chipmakers, finally eclipsed a 34-year record. Nvidia’s prowess in graphics and AI also boosted Taiwan’s export-heavy market. The pan-European STOXX 600 reached an all-time intraday peak, brushing aside concerns over rising interest rates.
AI transformation Fuels Surging Demand
The surge in data center revenue, accounts for over 50% of total sales, underscores the pivotal role of AI in driving future growth. From natural language processing (NLP) models like ChatGPT to computer vision and robotics, AI is permeating virtually every industry and application.
“Nvidia RTX has accelerated ray tracing and AI in games and creative applications, impacting millions of developers and content creators,” explained Huang.
He added that the addressable market for gaming platforms and workstations stands at an “enormous” $300 billion opportunity today.
Moreover, the meteoric rise of generative AI models like DALL-E 2, GPT-4, and Sonantic points to exponentially growing appetite for specialized AI hardware.
GPUs and dedicated AI chipsets power leading-edge research into domains like multi-modal learning, few-shot learning, and unsupervised pre-training across organizations worldwide.
GTC 2024 Conference to Showcase Major Innovations
With immense momentum behind accelerated computing and AI, Nvidia promises more groundbreaking innovations on the horizon. The company’s annual GPU Technology Conference (GTC) offers a glimpse into the future.
Slated for March 18-21, 2024 in San Jose, California, GTC 2024 includes CEO Jensen Huang’s opening keynote address and over 900 sessions spanning AI, data science, graphics, quantum computing, robotics, and more cutting-edge domains.
“The coming year looks to be one of the most seminal and revolutionary periods in both computing and AI,” stated Huang.
He invited the world to join GTC 2024, either in-person or virtually, to witness the next wave of transformative technologies.
As AI permeates the fabric of technology and business, Nvidia seems poised to lead the revolution. With an impressive growth trajectory across gaming, data centers, AI, autonomous vehicles, and the metaverse, it promises to remain at the vanguard of accelerated computing for the foreseeable future.
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