Nvidia – Q1 2024 financial report

Nvidia, one of the largest computer component manufacturers in the world, has released its financial report for the first quarter of the 2024 fiscal year. Despite a expected decrease in revenue by 13% to $7.19 billion, the company’s results are so impressive that Nvidia’s stock rose by nearly 25% in after-hours trading.

Despite a 13% decrease in revenue, Nvidia’s financial report for Q1 of the 2024 fiscal year shows impressive growth in the data center segment due to the strong demand for its specialized AI processors. The company’s profitability has also improved, with operating profit increasing by 15% and profitability reaching 30%. Investors are optimistic about Nvidia’s future, with forecasts predicting a record-breaking Q2 with revenue expected to reach $11 billion. The company’s leadership in AI has driven stock growth, with fundamental analysis indicating potential for a 21% increase in share prices.

The key catalyst for the company’s success is artificial intelligence (AI), which has become one of the main trends in the IT industry. There is a strong demand for Nvidia’s specialized AI processors from large consumer internet companies and cloud service providers. This has led to record sales of data center chips totaling $4.28 billion, which is 10% higher than analysts’ estimates.

The data center segment was the most successful for the company, accounting for 59.6% of all sales in the first quarter. The steady trend of sales growth in this segment was influenced by Nvidia’s solutions in the field of generative AI and LLMs (Large Language Models). At the same time, revenue from gaming products has started to grow again, but is still below last year’s levels.

One of the most important points of the report was the improvement in the company’s profitability. Operating profit increased by 15% and profitability reached 30%. This is due to Nvidia strengthening its leadership in the semiconductor industry for AI, providing the most efficient and in-demand solutions for data centers.

According to the company’s forecasts, the next quarter could be the best in Nvidia’s history, with revenue expected to reach $11 billion, which is 33% higher than last year’s figures. Investors are willing to pay a premium for Nvidia’s leadership in AI, which is the main driver of stock growth. According to fundamental analysis, the target price of the company’s shares could reach $464 per share, giving a potential for growth of 21%. Overall, Nvidia’s report for the first quarter of the 2024 fiscal year inspires optimism and confirms the company’s strong position in the IT industry.

Key financial results for Q1 2024 (GAAP): Nvidia

Indicator	Value	YoY change (%)
Revenue	$7.19 billion	↓ -13%
Operating profit	$2.14 billion	↑ +15%
Net income	$2.04 billion	↑ +26%
EPS	$0.82	↑ +28%

Based on the presented information, it is worth considering purchasing Nvidia shares. The company has shown strong financial results due to high demand for its products in the field of artificial intelligence and data centers. The company is strengthening its leadership in the semiconductor industry for AI by providing some of the most efficient solutions for data centers. Investors are willing to pay a high premium for AI leadership, which could lead to an increase in stock prices. However, it should be noted that record multiples are not always justified by the company’s fundamental indicators.