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Nvidia reports a 262% jump in sales, signals continuing AI boom

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Jensen Huang, co-founder and chief executive officer of Nvidia Corp., during the Nvidia GPU Technology Conference (GTC) in San Jose, California, US, on Tuesday, March 19, 2024. 
David Paul Morris | Bloomberg | Getty Images

Nvidia reported first fiscal-quarter earnings on Wednesday that beat expectations for sales and earnings, and provided a strong forecast for the current quarter. The stock rose 2% in extended trading. 

Nvidia said it was splitting its stock 10 to 1. 

  • Earnings Per Share: $6.12 adjusted vs. $5.59 adjusted, per LSEG consensus estimates.
  • Revenue: $26.04 billion vs. $24.65 billion expected by LSEG

Nvidia said it expected sales of $28 billion in the current quarter. Wall Street was expecting earnings per share of $5.95 on sales of $26.61 billion, according to LSEG. 

Nvidia reported net income for the quarter of $14.88 billion, or $5.98 per share, compared with $2.04 billion, or 82 cents, in the year-ago period. 

In the past year, sales have skyrocketed as companies such as Google, Microsoft, Meta, Amazon and OpenAI buy billions of dollars of Nvidia’s GPUs, which are advanced and pricey chips required for developing and deploying artificial intelligence applications. 

The company’s largest and most important business is its data center sales, which includes its AI chips as well as many of the additional parts needed to run big AI servers. 

Nvidia said its data center category rose 427% from the year-ago quarter to $22.6 billion in revenue. Nvidia CFO Colette Kress said in a statement that it was due to shipments of the company’s “Hopper” graphics processors, which include the company’s H100 GPU.

Nvidia also highlighted strong sales of its networking parts, which are increasingly important as companies build clusters of tens of thousands of chips that need to be connected. Nvidia said that it had $3.2 billion in networking revenue, primarily its Infiniband products, which was over three times higher than last year’s sales.

Nvidia, before it became the top supplier to big companies building AI, was known primarily as a company making hardware for 3D gaming. The company’s gaming revenue was up 18% during the quarter to $2.64 billion.

The company also sells chips for cars and chips for advanced graphics workstations, which remain much smaller than its data center business. The company reported $427 million in professional visualization sales, and $329 million in automotive sales.

WATCH: Nvidia options pricing unprecedented market cap move on earnings

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