Nvidia (NVDA) announced its Q4 2024 earnings after the bell on Wednesday, 27 February.
Background
- The numbers reported by the company exceeded analysts' expectations on the top and bottom lines
- For the quarter, Nvidia reported an EPS of $0.89 and a revenue of $39.3 billion
- The aforementioned revenue figure represents a 12% rise from its previous quarter and a 78% rise from the same quarter a year back
- Wall Street was expecting Nvidia to report a revenue of around $38 billion
- As far as Q1 2025 is concerned, company executives said that they expect to crunch in $43 billion (plus or minus 2%)
- The shares of the company soared above $136 on the heels of the earnings report release
Why should you pay attention?
- Nvidia was one of the first mainstream companies to capitalize on the AI trend
- Right when it established a foothold in the market, its GPU chips started selling like hot pancakes
- The ripple effect? The company’s financials started improving, and in no time, it became the world’s most valuable company
- It continues to be in a commanding position despite competition from names like DeepSeek
- In fact, stats suggest that the AI chipmaker has thrived better in the past few months vs. the past few years combined
- Nvidia’s data center revenue made up over 90% of its total revenue
- Specifically, the figure stood at $35.6 billion, up 93% from a year ago
Who said what?
- CEO Jensen Huang said,
"We’ve successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter”
- He added,
"AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries”
Zooming out
- Huang recently declared the rise of “Agentic AI” in a keynote speech
- He said that this shift will create a multi-trillion-dollar industry and change how people work
- Huang exclaimed, “The age of AI Agentics is here. [It’s] a multi-trillion-dollar opportunity”
