05/25/2024 – 10:34
Nvidia surpassed profit estimates for the sixth consecutive quarter and recorded new record revenue, according to a balance sheet published on the evening of Wednesday, 22nd. Analyst Louis Navellier, from management firm Navellier, said that the company has closed the quarterly results season for manufacturers of “golden key” processors.
Nvidia’s shares rose 6.06% in the New York aftermarket, to above the US$ 1,000 level, and contaminated the shares of other companies in the segment, with Micron, which rose 2.43%, and those of Advanced Micro Devices (AMD), which rose 1.95%. TSMC’s American Depositary Receipts (ADRs) rose 4.07%.
Investors were encouraged by the new increase in the company’s guidance for the current quarter, of US$ 28 billion in sales. In the first quarter of fiscal 2025, Nvidia had revenue of US$26 billion, representing annual growth of 262%, and net profit of US$14.9 billion, an annual increase of 628%.
The robust numbers indicate that the artificial intelligence revolution will continue and should also extend to the cloud computing segment, according to Navellier.
In a conference with investors, Nvidia’s chief financial officer, Colette Kress, stated that demand for the company’s new generation of graphics processing units (GPU) is already “notably higher than production” expected for this year and next. Named Blackwell, the new models should begin to be delivered soon, with an impact on revenue in the next quarter.
According to Arbor Capital partner Matheus Popst, the high demand for GPUs “gives a lot of confidence that, at least in the short term, Nvidia is not generating all the revenue it is capable of generating”. Popst also highlighted the diversification of the company’s revenue, with around 45% of the total coming from the cloud data center market.
The analyst considers diversification crucial, as Nvidia’s main customers – Microsoft, Google, Amazon and Meta – seek to develop their own artificial intelligence accelerators, to reduce dependence on the company’s processors.
Also according to the partner at Arbor Capital, the balance sheet published on Wednesday does not change the company’s narrative of growth outside the curve: while Nvidia’s annualized revenue from artificial intelligence already exceeds US$100 billion, competitor AMD expects to reach US$3 .5 billion.
After publishing the results, Nvidia announced that it will split the shares 10 for 1, starting on June 7th. “A stock split should attract new investors, now from retail,” said AJ Bell analyst Dan Coatsworth.
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