NVIDIA Stock Earnings: Key Information and Insights

NVIDIA's record revenue growth and AI dominance propel stock price surge, making it a key player in tech industry.

NVIDIA has reported record-breaking quarterly revenue of US$22.1 billion, marking a 22 percent increase from the previous quarter and a staggering 265 percent growth compared to the same period last year. The company attributed these gains primarily to its data center revenue, which reached US$18.4 billion, up 27 percent from the previous quarter and a remarkable 409 percent increase year-on-year. Non-GAAP earnings per diluted share also saw a significant increase of 28 percent from the previous quarter, reaching US$5.16, surpassing analysts' expectations of US$4.64, and representing a remarkable 486 percent growth year-on-year.

For the 2024 fiscal year, NVIDIA's revenue soared by 126 percent to US$60.9 billion, solidifying its position as a leader in the artificial intelligence (AI) industry. The company has consistently exceeded analysts' estimates quarter after quarter, with its Q3 metrics showing revenue of US$18.12 billion, a 34 percent increase from the previous quarter and a remarkable 206 percent growth year-on-year. Non-GAAP earnings per diluted share of US$4.02 were up by 49 percent from the previous quarter and nearly six times higher year-on-year, driven by NVIDIA's data center business.

Looking ahead, NVIDIA anticipated Q4 revenue of US$20 billion, plus or minus 2 percent, with analysts predicting a significant increase compared to the previous year. The company's share price has experienced substantial growth, tripling in value in 2023 and gaining over 50 percent in 2024, fueled by the rising demand for its AI-focused products and services. NVIDIA has emerged as a key player in the AI industry, surpassing tech giants like Amazon and Alphabet to become the world's third most valuable company. Its success has contributed significantly to the overall performance of the S&P 500 index, which surpassed the 5,000 level on February 8, with NVIDIA accounting for a third of those gains.

In addition to its strong financial performance, NVIDIA has been making strategic moves to expand into the custom chip market, aiming to maintain its competitive edge in the AI sector. By offering custom chips at competitive prices or with superior performance, NVIDIA could disrupt competitors' plans and solidify its position in the market. The company is also exploring partnerships with companies like Ericsson to develop wireless chips for telecom infrastructure, as well as custom chips for the automotive and gaming industries.

Despite some volatility in its stock performance leading up to its Q4 results, NVIDIA remains optimistic about its growth prospects in the first quarter of its 2025 fiscal year. CEO Jensen Huang expressed confidence in the company's future, highlighting the success of NVIDIA RTX as a massive platform for generative AI and emphasizing the company's commitment to innovation.

Overall, NVIDIA's remarkable financial performance and strategic initiatives underscore its leadership in the AI industry and its potential for continued growth in the future. Stay updated with real-time news by following us @INN_Technology!