Nvidia, Record Quarterly and $50 Billion Buyback. Negative Title in Afterhours
A record quarter for Nvidia which establishes itself as the undisputed queen of hardware architectures for the AI. Revenues of 30.04 billion dollars, beating estimates of 28.74 billion, a performance of +15% compared to the previous quarter and +122% compared to last year. Record revenues for the “Data Center” which stands at 26.3 billion, +16% compared to the previous quarter and +122% compared to last year. Useful for action at $0.68 versus the $0.65 initially estimated by analysts, essentially record numbers for the AI giant.
Nvidia also announced a plan to 50 billion share buyback dollars and confirmed the payment of a dividend of $0.01 per share for next October.
Jensen HuangCEO of Nvidia, said that demand for the Hopper Superchip is constantly growing and the new Blackwell It will be incredible, this is mainly due to the fact that global data centers are pushing for modernization and renewal, so the demand is still strong. “Generative AI will revolutionize every manufacturing sector,” the CEO said.
As for the projections for the next quarter, Nvidia sees Q3 revenues at $32.5 billion +/- 2% with a gross margin of 74% to 75%.
Non-uniform growth
The sector “Data Center”, the true core business of Nvidia due to its huge revenues, is the one that has grown the most compared to last year with a growth of 154%, a high growth that is far from the other production sectors of the company. For example, the sector Gaming grew by 16% compared to last year, the sector “Professional Visualization” grows by 20% compared to last year and “Automotive and Robotics” grows by 37%. Certainly important numbers that indicate growth but at the same time see a clear imbalance in the Data Centers, a growth condition that Nvidia will not be able to maintain for such a long time.
Stock down after quarterly results
Title that closes trading at 125.61 at the close of the US session and which sees a strong decline after the release of the quarterly data. The title in afterhours loses about -7% reaching levels just under 117 dollars per share. Most likely weighing is the strong capitalization of Nvidia which stands at nearly 3,000 billion dollars, a monstrous capitalization that is close to that of giants such as Apple and Microsoft.
The decline, in addition to a technical nature which still sees Nvidia to test the monthly highs, also sees a possible downsizing of growth estimatesas we have seen with the discrepancies we see between the various production sectors of the company. Furthermore, as previously mentioned, the demand for data center chips driven mainly by innovation and strong investments on generative AIcould be halted if there were a general economic slowdown or a decrease in investment by companies.
*XTB Market Analyst
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