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NVIDIA (NVDA) Q1 2024 earnings results beat EPS & revenue expectations

Chip giant NVIDIA is out with Q1 2024 earnings results, and they are looking good to shareholders.

Asif Khan

May 24, 2023 1:45 PM

NVIDIA

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NVIDIA just reported the company's Q1 2024 earnings results, and it appears to be good news for shareholders. The chip giant reported non-GAAP EPS of $1.09/share above consensus expectations of $0.92/share. Revenue of $7.2 billion also came in above estimates. NVIDIA also provided a very rosy Q2 2024 outlook, with the company now expecting $11 billion in sales. That's way above analyst Q2 2024 revenue expectations of $7.2 billion. Shares of NVIDIA are up 15% on the news.

Here are some highlights from the NVIDA Q1 2024 earnings release:

• Quarterly revenue of $7.19 billion, up 19% from previous quarter
• Record Data Center revenue of $4.28 billion
  • First-quarter Data Center revenue was a record $4.28 billion, up 14% from a year ago and up 18% from the previous quarter.
• Second quarter fiscal 2024 revenue outlook of $11.00 billion
• First-quarter Gaming revenue was $2.24 billion, down 38% from a year ago and up 22% from the previous quarter.
• First-quarter Professional Vision revenue was $295 million, down 53% from a year ago and up 31% from the previous quarter.
• First-quarter Automotive revenue was a record $296 million, up 114% from a year ago and up 1% from the previous quarter.

NVIDIA CEO Jensen Huang added some additional commentary:

“The computer industry is going through two simultaneous transitions — accelerated computing and generative AI,” said Jensen Huang, founder and CEO of NVIDIA.

“A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.

“Our entire data center family of 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 surging demand for them,” he said.

Outlook

NVIDIA’s outlook for the second quarter of fiscal 2024 is as follows:

• Revenue is expected to be $11.00 billion, plus or minus 2%.
• GAAP and non-GAAP gross margins are expected to be 68.6% and 70.0%, respectively, plus or minus 50 basis points.
• GAAP and non-GAAP operating expenses are expected to be approximately $2.71 billion and $1.90 billion, respectively.
• GAAP and non-GAAP other income and expenses are expected to be an income of approximately $90 million, excluding gains and losses from non-affiliated investments.
• GAAP and non-GAAP tax rates are expected to be 14.0%, plus or minus 1%, excluding any discrete items.

NVDA) Q1 2024 revenues of $7.19 billion are still down 13% from Q1 2023, the company saw sequential growth from Q4 2023, and the Q2 2024 outlook is undeniably good news for shareholders. With Q2 2024 gross margins expected to near 70%, maybe the company could lower the prices of some of those high-end GPUs.

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Asif Khan

CEO/EIC/EIEIO

Asif Khan is the CEO, EIC, and majority shareholder of Shacknews. He began his career in video game journalism as a freelancer in 2001 for Tendobox.com. Asif is a CPA and was formerly an investment adviser representative. After much success in his own personal investments, he retired from his day job in financial services and is currently focused on new private investments. His favorite PC game of all time is Duke Nukem 3D, and he is an unapologetic fan of most things Nintendo. Asif first frequented the Shack when it was sCary's Shugashack to find all things Quake. When he is not immersed in investments or gaming he is a purveyor of fine electronic music. Asif also has an irrational love of Cleveland sports.