Nvidia shares rise after it forecasts record 1Q revenue jump to USD78b-plus
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The news: Shares in Nvidia rose about 3% after it topped Wall Street’s estimates and projected first-quarter revenue of USD78 billion ($109.5 billion) plus or minus 2%, as tech groups continue to pour hundreds of billions of dollars into AI chips and data centres.
The numbers: The forecast compares with analysts’ average estimate of USD72.60 billion, according to data compiled by LSEG.
For the quarter ended in January, Nvidia reported revenue of USD68.13 billion, up 73% from a year ago and also ahead of estimates of USD66.21 billion. Adjusted profit was USD1.62 per share, compared with USD1.53 expected.
Data centre revenue was USD62.3 billion, above estimates of USD60.5 billion.
The company said hyperscalers accounted for “slightly over 50%” of Nvidia’s fourth-quarter data centre revenue and remained its largest customer category.
Shares rose about 3% in extended after-hours trading.
What they said: In its CFO commentary, the company said: “Revenue is expected to be $78.0 billion, plus or minus 2%. We are not assuming any Data Center compute revenue from China in our outlook.”
The context: Nvidia’s earnings come after weeks of stock market volatility tied to concerns over AI spending. Investors are turning to the company’s results to gauge the outlook, including whether the hundreds of billions of dollars Big Tech is pouring into data centre infrastructure are paying off.
They are among the most closely watched corporate earnings announcements, and Bloomberg noted the company released them about nine minutes later than usual.
The sources: Nvidia earnings, Bloomberg
