Nvidia earnings show AI demand is still roaring
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Jensen Huang. Photo: Ian Maule/Bloomberg via Getty Images
Nvidia topped analysts' earnings estimates on the top and bottom lines, with quarterly revenue coming in at $81.6 billion, ahead of estimates.
Why it matters: The biggest company in the world just signaled once again that its AI dominance is still expanding.
- Nvidia delivered the results within a new reporting framework, which could reflect an expansion of the business beyond chips.
Driving the news: The company's second quarter revenue forecast came in above estimates, between $89.18B and $92.8B.
- Nvidia boosted its dividend and authorized $80 billion worth of buybacks.
- The stock initially fell after results, though recovered ahead of the call.
Zoom in: The earnings report was restructured to better reflect "future growth drivers," according to the release.
- The company will now report two market platforms: data center and edge computing, with data center revenue being reported across two submarkets: hyperscale and AI clouds, industrial and enterprise (or ACIE).
- That restructuring could be "reflective that they are moving just beyond selling GPUs and they want to organize their business to prove it," Paul Meeks, head of tech research at Freedom Capital Markets, told Bloomberg Television.
- It could also be a way to address concern about Nvidia's revenue coming from a small group by making the revenue drivers more clear.
What they're saying: Nvidia "is no longer a chip company," Dan Newman, CEO of Futurum Group, told Axios, referring to the firm's broadened scope.
- "It's just one of these names you wanna own and forget about it," Adam Johnson, portfolio manager at the Bullseye American Ingenuity Fund told Axios.
- The latest earnings could give investors yet another reason to hold onto this stock for the long haul.
Flashback: This comes after years of earnings growth that is hard to describe with just one superlative:
- Revenue surged from $27 billion in fiscal 2023 to $216 billion in the most recent fiscal year, which ended in January, per Barrons.
