Nvidia beats estimates with quarterly revenue of $7.19 billion, down 13% from a year ago

Nvidia reported revenue of $7.19 billion for the fiscal first quarter that ended April 30, down 13% from a year ago. But it beat expectations on Wall Street in the quarter.

The AI ​​and graphics chip maker said it had record data center revenue of $4.28 billion, up 14% from a year ago. That’s a sign that data center customers are on a recovery path. In after-hours trading, Nvidia’s stock price is up $375.26 per share, up 23%.

Analysts expected Nvidia to post adjusted earnings of 92 cents per share, but Nvidia came in at $1.09 per share, or $2.7 billion, in adjusted net income. That was 20% less than a year ago and 24% more than the previous quarter. Wall Street was only expecting $6.53 in revenue in the quarter.

Gaming

First-quarter revenue was $2.24 billion, down 38% from a year ago and up 22% from the prior quarter.
It announced the GeForce RTX 4060 family of GPUs, bringing the advancements of Nvidia Ada Lovelace architecture and DLSS, starting at $299.

Nvidia released the GeForce RTX 4070 GPU based on the Ada architecture, which enables DLSS 3, real-time ray tracing, and the ability to run most modern games at 100+ frames per second at 1440p resolution. It also added 36 DLSS game titles, bringing the total number of games and apps to 300. And Nvidia expanded GeForce Now game titles to more than 1,600.

Data center

First-quarter revenue was a record $4.28 billion, up 14% from a year ago and up 18% from the prior quarter. The company launched four inference platforms that combine the company’s full-stack inference software with the latest Nvidia Ada, Hopper and Grace Hopper processors.

professional visualization

First-quarter revenue was $295 million, down 53% from a year ago and up 31% from the prior quarter.

Automotive

First-quarter revenue was a record $296 million, up 114% from a year ago and up 1% from the prior quarter. The company announced that its automotive design profit portfolio has grown to $14 billion over the next six years, up from $11 billion a year ago.

Nvidia estimates that revenue for the fiscal second quarter ending July 31 is expected to be $11 billion, a sizeable increase from the prior quarter.

GAAP diluted earnings per share for the quarter were 82 cents, up 28% from a year ago and up 44% from the prior quarter.

“The computing industry is going through two simultaneous transitions: accelerated computing and generative artificial intelligence,” Jensen Huang, founder and chief executive officer of Nvidia, said in a statement. “A trillion dollars of installed global data center infrastructure will shift from general purpose computing to accelerated computing as companies rush to apply generative AI into every product, service and business process.”

He added: “Our entire family of data center products—H100, Grace CPU, Grace Hopper Superchip, NVLink, Quantum 400 InfiniBand, and BlueField-3 DPU—is in production. We are significantly increasing our supply to meet the growing demand for them.”