Since the start of the AI boom, Nvidia has seen tremendous growth since its products are at the epicenter of AI. This fact was reaffirmed earlier this week during Nvidia’s quarterly earnings, which had some stunning statistics like…
Quarterly revenue of $26 billion, 262% higher than its Q1 revenue in 2023 and also significantly higher than analyst expectations of $24.6 billion
Data center revenue increasing 427% from Q1 2023, reaching $22.6 billion
Quarterly net income of $14.9 billion, up 461% from Q1 last year and 19% from last quarter. This figure was also higher than expectations of $13.1 billion.
This higher net income meant that EPS was $5.98 versus expectations of just $5.19
In short, Nvidia had a spectacular Q1, astounding investors and assuring them that the AI boom is not just a bubble. Furthermore, Nvidia’s new Blackwell AI architecture, which Nvidia has said is 4 times faster than its current Hopper AI architecture, seems poised to spur even more growth in 2024, especially when considering the fact that demand for Nvidia’s products currently outstrips supply.
Investors have responded positively to all this news as Nvidia stock has risen 14% this week and is up 121% YTD. Investor excitement may have also been stoked by the announcement that Nvidia will be splitting its stock 10:1. There may also be more excitement because Nvidia said it bought back $7.7 billion of its stock and is increasing its dividend.
