Nvidia reported earnings of $21.1 billion in the fourth quarter and adjusted earnings per share amounted to $5.16. On an annual basis, revenues surged by 265 percent.
The outcome was higher than analysts’ inflated expectations on both the profit and revenue side.
Revenue forecast for the quarter was $20.6 billion and earnings per share were expected to be $4.64, according to a compilation from LSEG, formerly Refinitiv.
Even the chip giant’s own sales forecast for the current quarter of 24 billion kroner was better than the analysts’ advance tip, which amounted to 22.2 billion dollars.
– A strong report from Nvidia that exceeds analysts’ expectations, says Pavel Lupandin, manager of SEB Artificial Intelligence, in a written comment to Privata Affärer.
The AI investments have given an enormous boost in demand for Nvidia’s products, above all the company’s graphics processors in the data center business area, the administrator points out.
Pavel Lupandin states that Nvidia’s forecasts for earnings development were “solid” and he sees “good opportunities” for continued growth in the next few years.
During the past reporting season, the investment forecasts from the cloud giants, the chip giant’s customers, have also had a bias against data centers, the administrator adds.
– What we follow closely is the supply. Nvidia mentioned at the analyst conference that demand still exceeds supply, but we see signs that manufacturing capacity is increasing, says Pavel Lupandin, referring to chip production.
– We also keep an eye on possible hoarding. When demand exceeds supply, there is a risk that customers will buy as much as they can get their hands on.
Nvidia’s financial year-end report for the 2024 fiscal year published after Wednesday’s market close. In after-market trading, the share rose around 10 percent.
Ahead of the report release, trading in the share was characterized by great nervousness. The rate has fallen close to 9 percent in the past week. The concern spread to other technology stocks, as Privata Affärer reported.
In Wednesday’s after-hours trading, Nvidia’s rally dragged other chip stocks such as AMD, Intel, Broadcom and Qualcomm. The report also had a big impact on the Asian stock exchanges.
The chip industry’s largest contract manufacturer TSMC traded up 2 percent on the Tapei Stock Exchange in Taiwan. In South Korea took off SK Hynix just over 5 percent while Samsung was up a modest 0.1 percent.
Read more: Philip Scholtzé: “Stocks are not a science – they are an art form”
Read more: Eklund: The pressure on mortgage borrowers will soon ease
Read more: Hernhag: Buy stocks with political potential
Read more: The star manager: “Google is late to the game”