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In Q1, Nvidia partnered with ServiceNow, Medtronic, Dell Technologies, and Microsoft’s Azure to build generative AI for its array of products.
Nvidia Corporation (NASDAQ: NVDA) shares jumped nearly 25 percent during Wednesday’s extended trading period to trade around $380.65, a new ATH. The American multinational tech company reported its financial results for the first quarter of fiscal year 2024. During the quarter that ended in April, Nvidia posted a total revenue of $7.19 billion versus the $6.52 billion expected by analysts surveyed by REFINITIV. As a result, the company posted adjusted earnings per share (EPS) of $1.09, whereas analysts surveyed by REFINITIV expected 92 cents.
The company’s shareholders were pleased with the current market outlook, whereby Nvidia said it expects sales of about $11 billion in the current quarter, which is 50 percent higher than the $7.15 billion expected by analysts. Nvidia has attributed its huge prospects to increased demand for its data center products more so in the emerging Artificial Intelligence (AI). Moreover, the Data Center revenue for the first quarter came in at $4.28 billion.
“A trillion dollars of installed global data center infrastructure will transition from general-purpose to accelerated computing as companies race to apply generative AI into every product, service, and business process,” Jensen Huang, founder and CEO of NVIDIA, noted.
Consequently, the company intends to ramp up production in its data center to meet the surging demand for its entire data center family of products – including H100, Grace CPU, Grace Hopper Superchip, NVLink, Quantum 400 InfiniBand, and BlueField-3 DPU.
Nvidia and Market Outlook
The company announced that it returned about $99 million to shareholders in cash dividends during the first quarter. Forward, Nvidia announced that it will pay the next quarterly cash dividend of $0.04 per share on June 30, 2023, to all shareholders of record on June 8, 2023. Moreover, the company expects its products to peak much higher in the second quarter fueled by the adoption of generative AI.
For instance, Google Cloud will be offering its customers the NVIDIA L4 Tensor Core GPU to accelerate generative AI applications. Additionally, the company announced the NVIDIA AI Foundations during the first quarter to help customers create custom large language models and generative AI models. Worth noting, Nvidia partnered with ServiceNow, Medtronic, Dell Technologies, and Microsoft’s Azure to build generative AI for its array of products.
For gamers, Nvidia launched the GeForce RTX 4070 GPU during the first quarter to enable modern games to run smoothly.
Following the spike in NVDA shares, the company’s market capitalization jumped to about $758 billion. Moreover, NVDA shares are up approximately 108 percent YTD, after rallying about 79 percent last year.