By
Kseniia Klichova
March 31st, 2024
As revenue increased in the last quarter, hopes are high that Nvidia will also see profits in the fiscal Q1.
Multinational technology company Nvidia (NASDAQ: NVDA) has announced a strong revenue outlook for the fiscal Q1 after exceeding Wall Street’s target in its fiscal fourth-quarter earnings call. According to the announcement on the 16th of February, Nvidia had strong data-center chip sales in the fiscal Q4. Also, revenue was $7.6 billion, higher than the expected $7.42 billion. Adjusted earnings per share (EPS) was $1.32 vs. analysts’ expectation of $1.22. This represents a 69% jump year-on-year. Nvidia’s stock declined about 2% in after-hours trading following the earnings report. Currently, NVDA is down 2.68% to $258.01 in extended trading hours.
Cloud providers and enterprises are now using graphics processors by Nvidia. Generally, the processors are used for artificial intelligence (AI) applications such as recommendations and speech recognition. In the fourth fiscal quarter, sales generated from Nvidia’s data center business were $3.26 billion. Apart from being a 71% increase year-on-year, the sales is also more than Wall Street’s expectation of $3.15 billion. Nvidia has also revealed that Meta Platforms (NASDAQ: FB) would use its chips for AI research. Furthermore, businesses use Nvidia’s chips for applications such as computer-aided design.
Nvidia generates funds from many businesses, but gaming remains its largest market. Its GeForce graphics processors are suitable for playing advanced computer games. In the last quarter, the company realized $3.42 billion in its gaming business, growing over the expected $3.36 billion. The business advanced 37% year-over-year due to sales of its GeForce. Nvidia said sales in its Professional Visualization business was $643 billion, a 109% spike compared to the previous year. According to the chipmaker, the increase was fueled by workstation chip sales and hybrid working.
Nvidia Expects Strong Revenue in Fiscal Q1
As revenue increased in the last quarter, hopes are high that Nvidia will also see profits in the fiscal Q1.
Moving forward, Nvidia has provided a strong revenue outlook for the fiscal Q1. The chipmaker said it expects to see revenue of $8.1 billion in the quarter, beating analysts’ expectations of $7.29 billion. CEO Jensen Huang stated the reason for the high revenue prediction. In a statement, the CEO said that there is an “exceptional” demand for Nvidia’s chips, which will bring profits to the company in the fiscal Q1. In addition, the technology company’s CEO said supply constraints were easing. He also predicted that Nvidia’s products supply would surge “substantially” in the second half of 2022.
During a call with analysts, Hyang said:
“We expect supply to improve each and every quarter going forward.”
Nvidia has gained nearly 78% in the last twelve months and added 5.76% over the past month. However, the company has declined almost 10% since the year began. NVDA has also dropped 9.40% in the last three months and plunged 0.73% in the last five days.