Nvidia shares bounce on full-year results
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The news: Nvidia posted huge gains for the fourth quarter, reporting record quarterly revenue of USD22.1 billion ($33.7 billion), up 265% from a year ago, surpassing expectations.
The numbers: Nvidia's full-year revenue of USD60.9 billion represented a 126% rise from a year earlier, while quarterly revenue grew 22% quarter-on-quarter. This encompassed record quarterly data centre revenue of USD18.4 billion, up 27% from Q3 and 409% compared to a year prior.
Generally accepted accounting principles (GAAP) earnings per diluted share was up 586% year-on-year to USD11.93, while non-GAAP earnings per diluted share was USD12.96, up 288% from a year ago.
Nvidia's shares fell 2.85% during the trading day but rose more than 6% to USD716.58 in after hours trading shortly after its results were released.
Nvidia's revenue outlook for the first quarter of fiscal 2025 is expected to be USD25 billion, plus or minus 2%, surpassing analyst expectations of USD22.17 billion, according to LSEG data.
The context: Analysts were broadly bullish on Nvidia stock prior to the release, which has gained more than USD1 trillion in market value over the past year.
Shares in the AI semiconductor company are up 36% this year through Wednesday's close, well ahead of the S&P 500. The rise in Nvidia’s shares has made the company one of the most valuable in the US, pushing its market value above that of several tech giants.
Earlier this month, the company surpassed Amazon and Alphabet in market cap.
What they said: Nvidia's founder and CEO Jensen Huang said: “Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations".
“Our data centre platform is powered by increasingly diverse drivers — demand for data processing, training and inference from large cloud-service providers and GPU-specialised ones, as well as from enterprise software and consumer internet companies. Vertical industries — led by auto, financial services and healthcare — are now at a multibillion-dollar level," he said.
“NVIDIA RTX, introduced less than six years ago, is now a massive PC platform for generative AI, enjoyed by 100 million gamers and creators. The year ahead will bring major new product cycles with exceptional innovations to help propel our industry forward."
The source: Nvidia media release
