NVDA Has Robust Financials

The previous year, Nvidia dominated the AI chip market with an estimated 90% share, leading to remarkable earnings. In its latest quarter (Q4 of fiscal 2024, ending in January), revenue surged by 265% to $22 billion, with operating income soaring by 983% to nearly $14 billion. This growth was fueled by a 409% increase in data center revenue, driven by AI GPU sales.

The company’s free cash flow skyrocketed by 430% to over $27 billion, surpassing AMD’s $1 billion and Intel’s notable $14 billion. Despite the competition’s new GPU releases, Nvidia’s AI advantage likely propelled it ahead, ensuring robust cash reserves for continued innovation and market leadership. Moreover, the company now sits in third place in the race to be the world’s most valuable company, just behind Apple $Apple(AAPL.US)$ and Microsoft.