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,Nividia beats expectation with 262% revenue
Record Sales of AI chips sent Nividia’s revenue up 262 percent in the past quarter, beating expectations, and its chief executive said its growth was set to continue this year with the launch of a new line of chips .
Jensen Huang told investors the company would see a lot of revenue from its Blackwell chips this year as it profited from exploding demand for the computing power behind generative AI.
Blackwell would contribute to a new phase of growth for the group, Huang said. Nividia would continue rolling out newer, more powerful chips at the same pace.
After Balckwell, there is another chip and we are on one year rhythm, he said
Demand for Nividia’s AI data center graphics processing units has skyrocketed in the past year as the biggest tech companies ruch to develop the computing infrastructure needed to deliver powerful AI products at scale. Google, Micro-soft, Meta and Amazon have all indicated that their spending would remain high thought 2024.
Revenue for three months to the end of April was 26 billion dollar versus consensus estimated of 24.7 billion. The year on year increase was similar to the previous quarter, when growth is 265 percent. For the current quarter Nvidia expects revenue of about 28 billion dollar, plus or minus 2 percent ,compared with consensus estimates of 26 billion dollar.
Nvidia’s data centre revenue, which relates to its coveted AI chips, was up 427 percent year on year for the quarter to 22.6 billion driven by strong demand for Nvidia’s current generation Hopper GPUs, Nividia chief financial officer COllete Kress told investors, shipments of the Blackwell chip are expected to start this quarter.
Nvidia shares were 8.3 percent higher in early trading yesterday .Thehave more than doubled in value during a blistering rally this year.
The chip-maker announced a 10 for one stock split effective June 7 and said it was raising its quarterly cash dividend 150 percent.
Since the start of 2023, its market capitalization has increased more than six fold to 2.3 trillion ,overtaking Google parent Alphabet and Amazon to become the third most valuable US listed company.
It revealed its Blackwell chips in March, which it says are twice as power ful as the current generation of chips for training AI models and offer five times the performance on “interference” the speed at which such models can respond to queries.
That came just a year after the company revealed its previous generation of GPU chip architecture, Hopper.
Diluted earnings per share were 5.98 dollar, up more than 600 percent from a year ago. Gross margin was 78.4 percent ,slightly better than the 77 percent analysts had projected ,with net income at 15.9 billion, ahead of expectations for 13.2 billion dollar.
Nividia beat on the data centre (Revenue) and beat across the board, said Daniel Newman, head of the Futurum Group . “ The Whole market was waiting for this number, and Nividia delivered.
