Nvidia’s Earnings were reported Nvidia reported earnings that exceeded Wall Street expectations, continuing its strong performance in the ongoing artificial intelligence boom. Despite this, Nvidia shares fell 8% in extended trading.
Here is how the company did versus LSEG consensus expectations:
- Earnings per share: 68 cents adjusted vs. 64 cents expected
- Revenue: $30.04 billion vs. $28.7 billion expected
The chipmaker reported an adjusted earnings per share of 68 cents, beating the expected 64 cents. Revenue surged to $30.04 billion, surpassing the anticipated $28.7 billion. Nvidia projects $32.5 billion in revenue for the current quarter, well above analyst expectations of $31.7 billion.
Nvidia’s revenue has seen a meteoric rise, climbing 122% year-over-year, with net income more than doubling to $16.6 billion. The company’s data centre business, a major growth driver, reported $26.3 billion in sales, making up 88% of total revenue.
Much of Nvidia’s success stems from its AI processors used by major tech giants like Microsoft, Alphabet, and Meta. The anticipation for Nvidia’s next-generation AI chip, Blackwell, is high, with shipments expected to contribute billions in revenue by Q4.
Despite this growth, Nvidia’s gross margin slipped to 75.1% this quarter from 78.4% in the previous period, though it’s still an improvement from 70.1% a year ago.
Nvidia’s gaming business also saw a resurgence, with revenue increasing 16% year-over-year to $2.9 billion, driven by increased PC gaming card shipments and game console SOCs.
Additionally, Nvidia’s professional visualization business grew 20% to $454 million, and its automotive and robotics revenue reached $346 million.
Nvidia approved $50 billion in additional share buybacks in a move that underscores confidence in its future.
