(supplemented by Q1 outlook, price reaction, statements from CEO Jensen Huang, segment sales) AI kingpin Nvidia reported its figures for the fourth quarter on Wednesday after the end of regular trading on New York’s Wall Street. The expectations of investors in the run-up to the publication were enormous, after all, the share price has increased by more than 40 percent in the current year alone. You can find out in the article how the last three months went operationally and how the share reacted to the numbers.
The chip manufacturer Nvidia published figures for January 31st in the evening. the final quarter of 2023/24 that ended. You can see the values for sales and profit in the overview. The average results expected by analysts are shown in brackets.
Sales Q4: $22.1 billion ($20.67 billion, +242 percent yoy)
EPS Q4: $4.93 ($4.69, +423 percent yoy)
Data center revenue: 18.4 billion dollars +27% compared to Q3 and +409 percent compared to the previous year.
Gaming revenue: $2.9 billion r/v vs. Q3 and +56 percent y/y.
Sales visualization: $463 million +11 percent compared to Q3 and +105 percent compared to the previous year.
Automotive sales: 281 million +8 percent compared to Q3 and -4 percent compared to the previous year.
Nvidia is the biggest beneficiary of the AI boom that broke out in spring 2023. The company’s ultra-fast graphics cards enable operators of large data centers to train and develop AI models. The rush for Nvidia’s hardware has led to an explosion in the price of the corresponding products and caused the company’s sales and profits to skyrocket.
In the wake of this, the company’s share price also rose sharply. In 2023 the price increase was more than 220 percent. A further 40 percent has been added so far this year. Nvidia has now moved past internet giants such as Alphabet and Amazon in terms of market value.
And the rush for Nvidia chips appears to be continuing in the new year. Management expects revenue of $24 billion for the first quarter. Analysts on average had calculated sales of $22.2 billion. If Nvidia can maintain its enormous profitability, the bottom line could be just over $13 billion in profit in the first quarter.
Company founder and CEO Jensen Huang said in the evening: “Generative AI and high computer performance have reached a turning point. Demand is increasing rapidly worldwide, whether in companies, industries or entire nations. Individual sectors such as the automotive industry, the financial scene and healthcare are at a multi-billion dollar level dollar level.”
After the share slipped by 2.5 percent in an initial reaction to the publication, it was up around 10 percent at $739 around 10:50 p.m. CET. Things also go up for other AI players in the late evening. The shares of Super Micro Computer increased in price by around 2 percent and exceeded the $800 mark. The share of the securities account (in the AKTIONÄR portfolio) had corrected sharply after reaching a record high of $1,077 and had fallen back to $700.
Note: The article is continually updated. Further details on Nvidia’s Q4 numbers, analyst reactions and a press conference summary will follow soon.
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Note on conflicts of interest
The chairman of the board and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has directly and indirectly entered into positions on the following financial instruments or related derivatives mentioned in the publication, which may benefit from any price development resulting from the publication: Nvidia.