Nvidia Announces Financial Results for the First Quarter of Fiscal Year 2024
Nvidia, in its first quarter earnings report for the fiscal year 2024 (ending April 30, 2023), exceeded expectations in both revenues and forecasts for the ensuing quarter, highlighting the robust market demand for AI computational power. This has resulted in a widening revenue disparity between the data center and gaming sectors, visibly tilting Nvidia’s revenue fulcrum towards the former.
Jensen Huang, founder, and CEO of Nvidia, articulated that the computing industry is concurrently undergoing two transitions – accelerated computing and the generation of artificial intelligence. As companies vigorously strive to implement AI generation in every product, service, and business process, the global data center infrastructure is transitioning from generalized computing to accelerated computing.
The financial report reveals that Nvidia’s revenue in the first quarter of fiscal 2024 stood at $7.192 billion, a 13% decline year-over-year but a 19% sequential increase. The net profit amounted to $2.043 billion, marking a 26% year-over-year increase and a 44% sequential growth. Among these, the gaming business revenue was $2.24 billion, a 38% year-over-year decline but a 22% sequential increase. The data center business revenue was $4.28 billion, a 14% year-over-year increase, and an 18% sequential increase. The visualization business revenue was $295 million, a 53% year-over-year decrease, but a 31% sequential increase. Automotive business revenue was $296 million, a massive 114% year-over-year increase and a 1% sequential increase. Additionally, Nvidia’s gross margin stood at 64.6%, a decrease of 0.9 percentage points compared to 65.5% in the same period last year, but an increase of 1.3 percentage points compared to 63.3% in the previous quarter.
During the first quarter of fiscal 2024, Nvidia returned $90 million to its shareholders through stock buybacks and cash dividends. On June 30, 2023, Nvidia will pay a quarterly cash dividend of $0.04 per share to all shareholders registered by June 8, 2023.
Looking ahead to the second quarter of fiscal 2024, Nvidia anticipates revenues to be around $11 billion, subject to a 2% variance. This figure vastly surpasses analysts’ projections, which were initially pegged at about $7.15 billion. Furthermore, the gross margin is expected to be around 68.6%, with a 50 basis point fluctuation. Following the release of the earnings report, Nvidia’s stock price surged by almost 30% at one point, eventually closing up by a significant 24.37% on the Eastern Time close of May 25.