NVIDIA Corporation (NASDAQ:NVDA) shares surged almost 20% after the closing bell on Wednesday as the computing company reported first quarter fiscal 2024 earnings that zoomed past expectations.
The company posted revenue of $7.2 billion, above the consensus analyst expectation of $6.5 billion per Zacks Consensus Estimate.
Adjusted earnings per share of $1.09 were ahead of the expected $0.92.
However, both revenue and adjusted earnings per share decreased year-over-year, down 13% and 20%, respectively, from $8.3 billion and $1.36.
Gaming revenue for 1Q fiscal 2024 came in at $2.2 billion, down 22% from $3.6 billion in the year-ago quarter but ahead of the Street’s expectation per a Bloomberg survey of $1.9 billion.
Record Data Center revenue of $4.3 billion was up 18% year-over-year from $3.8 billion in 1Q fiscal 2023, exceeding the expected $3.8 billion.
“The computer industry is going through two simultaneous transitions — accelerated computing and generative AI,” said NVIDIA CEO Jensen Huang in a statement accompanying the results.
“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.”
Huang continued: “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.”
Investors welcomed NVIDIA’s results, sending the company’s stock 18.9% higher to US$362.98 in after-hours trading on Wednesday.
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