Nvidia (NASDAQ: NVDA) announces stellar earnings as AI sees increased global demand

Tech company Nvidia (NVDA) revealed one of its most closely watched earnings report on Wednesday after the bell. The Q4 stats confirmed robust performance for the artificial intelligence (AI) behemoth.

The firm’s financial results exceeded expectations as revenue came at $22.1 billion, beating analysts’ $20.55 billion forecast by 8.33%. Also, the $5.16 earnings per share came better than the predicted 4.64.

Nvidia earnings snapshot

• Revenue surged massively from last year’s $6B to $22.1B.
• EPS came at $5.16.
• Data center revenue soared 409% YoY to $18.4B.
• Gaming revenue jumped 56% over the past year to $2.8B.
• Gross margin stood at 76.0%.
• Net income increased by 769% YoY to $12.8B.
• Operating income gained over 983% YoY to $13.6B.

Increased artificial intelligence demand contributed to Nvidia’s massive performance. According to Nvidia CEO Jensen Huang,

“Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries, and nations.”

Moreover, the company expects elevated figures in the next financial report. Nvidia sees first-quarter 2024 revenue increasing to $24 billion, blowing past the $22 billion estimate.

NVDA stock outlook

The remarkable performance comes as the chip-maker, which has massively contributed to the AI revolution, saw its shares skyrocketing by over 200% within the previous twelve months. That propelled the firm’s market capitalization towards $1.7 trillion, outpacing Amazon and Google.

Nvidia remains poised for stable growth in the longer term. Analyst Rueben Roy believes,

“They’ve got a new set of technologies that we expect to be launched later this year, which will probably talk about and so I think it’s a question of expanding their technology that they’re bringing to the table across both hardware and software as well as networking and so I think that’s going to be an important area for investors to focus on.”