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Nvidia announces its Q1 2024 financial results

by on25 May 2023

Gaming down by 38 percent, stock up by 25 percent

Nvidia has released its financial report for the first quarter of 2024, reporting a revenue of $7.19b and gross margin of 64.6 percent. Despite a drop in revenue and gross margin, compared to the last year, Nvidia's stock is up and it announced a great Q2 FY2024 outlook.

According to the full financial report, the Q1 FY2024 was not that great for Nvidai, reporting a drop of 13 percent in revenue compared to the last year. The revenue was also up by 19 percent compared to the last quarter. The reported 64.6 percent gross margin is a drop of 0.9 percent compared to the last year and an improvement of 1.3 percent compared to the last quarter. The company also reported operating income of $2.14b and operating expenses of $2.5b, with net income of $2.04b. The diluted earnings per share (EPS) are at $0.82, up by 28 percent compared to the last year, and up by 44 percent compared to the previous quarter.

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“The computer industry is going through two simultaneous transitions — accelerated computing and generative AI,” said Jensen Huang, founder and CEO of NVIDIA. “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. Our entire data center family of products — H100, Grace CPU, Grace Hopper Superchip, NVLink, Quantum 400 InfiniBand and BlueField-3 DPU — is in production. We are significantly increasing our supply to meet surging demand for them."

While both the gaming and professional visualization departments reported a drop of 38 and 31 percent compared to the last year, its data center and automotive are up by 14 and 114 percent, respectively.

The data center group is the big winner, with a record revenue of $4.28, up by 14 percent compared to the last year, and up by 18 percent compared to the previous quarter. Nvidia has launched its latest Nvidia Ada, Hopper, and Grace Hopper processors, provided Google Cloud with L4 Tensore Core GPU, offering new products and services based on the H100 Tensor Core GPU, as well as announced key partnerships with Dell, Microsoft, Google, Amazon, and others.

Nvidia is hopeful that the gaming market will bounce back and its RTX 4060 and RTX 4070 products will sell pretty well. It also was keen to note its advancements in DLSS and new titles that were added to Geforce NOW.

Nvidia's outlook for Q2 FY2024 looks pretty impressive, expecting revenue of $11b (+/- 2%), with gross margin of 68.6 percent. Nvidia's stock is up by 25 percent at the time of writing, and actually up by 79.9 percent compared to the last year, holding at $305.38.

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