NVIDIA Earnings: What Key Metrics Say

Earnings season continues to wind down, with the majority of S&P 500 companies already delivering quarterly results. The period has been primarily positive, with results from the Technology sector keeping market sentiment in check.

Conversely, Energy results have weighed on the overall earnings picture. Nonetheless, one of the most highly-awaited quarterly releases was delivered yesterday after the bell – NVIDIA’s NVDA Q4 and FY24 results.

The stock has been on a tear over the last year thanks to the AI frenzy, with shares up more than 230% during the period. Investors took its quarterly print in stride, pushing shares higher post-earnings. Let’s take a closer look at a few key metrics from the release.

NVIDIA Q4

The company delivered Q4 revenue of a record $22.1 billion, up 27% sequentially and a sizable 409% on a year-over-year basis. Non-GAAP EPS totaled $5.16, climbing 28% sequentially and 485% from the year-ago period. 

Both items exceeded our consensus earnings and revenue expectations, penciling in beats of 13% and 8%, respectively.

Data Center

Of course, Data Center was the real highlight of the release, which included sales of its AI chips. NVIDIA’s Data Center raked in $18.4 billion (yet again, another quarterly record) throughout the period, up an astonishing 410% on a year-over-year stack.

The reported figure handily beat our consensus estimate of $16.9 billion by nearly 9% (or $1.4 billion). It reflected the company’s fourth consecutive release of posting better-than-expected Data Center results, as we can see below.

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Image Source: Zacks Investment Research

Jensen Huang, CEO, on the results: “Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations,”.

Gaming

Gaming revenue growth was also robust, with quarterly revenue of $2.9 billion 56% higher year-over-year. It’s also worth noting that the company launched its GeForce RTX 40 SUPER Series GPUs throughout the period, with generative AI capabilities for over 100 million RTX AI PCs also announced.

Similar to Data Center results, the reported figure exceeded our consensus estimate by 7% (or $186 million), continuing a recent streak of better-than-expected Gaming results.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

It was another robust quarter for market-favorite NVIDIA NVDA, with the company continuing to enjoy robust growth stemming from AI demand. Unsurprisingly, shares jumped following the release, reflecting investors’ positive sentiment.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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