Nvidia Corp (Nasdaq: NVDA) reported better-than-anticipated fiscal 2024 first-quarter results. The company also issued an upbeat second-quarter revenue outlook. The stock of the inventor of graphic processing units (GPU) ended Wednesday’s trading session at $379.80, up $74.42 or 24.37% from the prior close. Notably, the stock has appreciated over 100% this year.
Santa Clara, California-based Nvidia posted first-quarter revenues of $7.19 billion, down 13.30% from $8.29 billion in the similar quarter last year.
For the first quarter, which ended April 30, 2023, the company recorded a net income of $2.04 billion, or $0.82 per share, compared with a net income of $1.62 billion, or $0.64 per share, in the quarter ended May 1, 2022.
Excluding stock-based compensation expense, acquisition-related costs, and IP-related expenses, among others, Nvidia reported Q1 2024 non-GAAP net income of $2.71 billion, or $1.03 per share, down from $3.44 billion, or $1.36 per share, in Q1 2023.
Analysts surveyed by Refinitiv had anticipated the company to report earnings of $0.92 per share on revenues of $6.52 billion.
Segment wise:
- Data Center revenue hit a record of $4.28 billion, up 14% on a y-o-y basis. Wall Street analysts had anticipated revenues of $3.90 billion. The company pointed out that the performance was led by a rise in demand for GPU chips from cloud companies and also large consumer internet firms, which utilize Nvidia chips for machine learning and install AI applications such as ChatGPT.
- The gaming division posted revenues plunged 38% y-o-y to $2.24 billion. Analysts surveyed by FactSet had anticipated the company to report revenues of $1.98 billion. Nvidia pointed out the weak macroeconomic scenario as the primary reason for the decline in sales.
- Professional visualization revenues were $295 million, a decrease of 53% from last year.
- Automotive division (designing and manufacturing chips for self-driving cars) revenues jumped 114% y-o-y to $296 million.
At the end of the first quarter, Nvidia had cash and cash equivalents of $5.08 billion, up from $3.89 billion in the prior-year period.
Looking ahead, the company forecasts revenues of roughly $11 billion (+/- 2%) for the current quarter. Wall Street analysts forecast revenues of $7.15 billion. Also, Nvidia has announced a quarterly cash dividend of $0.04 per share, payable on June 30, 2023.
The upbeat quarterly results are expected to keep Nvidia’s stock bullish in the short term.
The historical price chart indicates a gap-up trading session yesterday due to stupendous results. The support lies at 370, while the resistance is expected near 400. Also, the stock is trading above its 50-day moving average, while the Chaikin money flow indicator is showing a positive reading. Therefore, we anticipate the stock of Nvidia to remain in an uptrend in the days ahead.
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