Account Info
Log Out
English
Back
Log in to access Online Inquiry
Back to the Top
NVIDIA Q1 FY24 earnings: Greatly beat expectations with stock price soaring 25%
Views 222K Contents 42

NVIDIA - The AI boom is real

avatar
JP_mykayaplus joined discussion · May 25, 2023 08:58
NVIDIA - The AI boom is real
The most anticipated quarterly results did not disappoint.
In fact, it was a treat that no one expected.
Post results, and after-market, $NVIDIA(NVDA.US)$ shares went up 30%.
So what made the shares pop so much?
1. Partly due to good results
Source: NVIDIA CFO Commentary on Q1'24 results
Source: NVIDIA CFO Commentary on Q1'24 results
Where $Advanced Micro Devices(AMD.US)$falter, NVIDIA seemed to prosper. Revenue was up 19% QoQ, albeit down 13% YoY.
Data center revenues smashed records, up 14% a year ago, led by demand for generative AI and large language model (LLM) using GPUs based on NVIDIA Hopper and Ampere architecture.
Gaming revenue pulled down the total revenue, down 38% and 22% sequentially. This was similar to other chip companies.
2. Partly due to better and improving margins
Source: NVIDIA CFO Commentary on Q1'24 results
Source: NVIDIA CFO Commentary on Q1'24 results
GAAP and non-GAAP gross margins declined YoY but increased QoQ.
Lower Gaming margins were buffered by higher contributions from Automotive and better Data Center margins.
3. Mostly due to blowout guidance
Source: NVIDIA CFO Commentary on Q1'24 results
Source: NVIDIA CFO Commentary on Q1'24 results
This would be the main reason for the share price soaring to dizzying heights.
To give a perspective, NVIDIA's Q2 revenue guidance was 52% ahead of the USD 7.1 billion consensus revenue estimate for the quarter.
One does not simply over-project revenue guidance against the street's estimates.
Also, GAAP and non-GAAP gross margins are going back up to 68.6% and 70.0% respectively.
This is definitely why the share price is now in frenzy mode.
Visit mykayaplus.com for more investing-related content!
DISCLAIMER
The information available in this article/report/analysis is for sharing and education purposes only. This is neither a recommendation to purchase or sell any of the shares, securities, or other instruments mentioned; nor can it be treated as professional advice to buy, sell or take a position in any shares, securities, or other instruments. If you need specific investment advice, please consult the relevant professional investment advice and/or for study or research only.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
1
2
12
1
+0
2
Translate
Report
108K Views
Comment
Sign in to post a comment
Co-founder, chief editor and analyst of mykayaplus.com
6690Followers
13Following
7446Visitors
Follow