Nvidia Reports a 262% Jump In Sales, 10-1 Stock Split (cnbc.com) 11
Nvidia reported fiscal first-quarter earnings surpassing expectations with strong forecasts, indicating sustained demand for its AI chips. Following the news, the company's stock rose over 6% in extended trading. Nvidia also said it was splitting its stock 10 to 1. CNBC reports: Nvidia said it expected sales of $28 billion in the current quarter. Wall Street was expecting earnings per share of $5.95 on sales of $26.61 billion, according to LSEG. Nvidia reported net income for the quarter of $14.88 billion, or $5.98 per share, compared with $2.04 billion, or 82 cents, in the year-ago period. [...] Nvidia said its data center category rose 427% from the year-ago quarter to $22.6 billion in revenue. Nvidia CFO Colette Kress said in a statement that it was due to shipments of the company's "Hopper" graphics processors, which include the company's H100 GPU.
Nvidia also highlighted strong sales of its networking parts, which are increasingly important as companies build clusters of tens of thousands of chips that need to be connected. Nvidia said that it had $3.2 billion in networking revenue, primarily its Infiniband products, which was over three times higher than last year's sales. Nvidia, before it became the top supplier to big companies building AI, was known primarily as a company making hardware for 3D gaming. The company's gaming revenue was up 18% during the quarter to $2.65 billion, which Nvidia attributed to strong demand.
The company also sells chips for cars and chips for advanced graphics workstations, which remain much smaller than its data center business. The company reported $427 million in professional visualization sales, and $329 million in automotive sales. Nvidia said it bought back $7.7 billion worth of its shares and paid $98 million in dividends during the quarter. Nvidia also said that it's increasing its quarterly cash dividend from 4 cents per share to 10 cents on a pre-split basis. After the split, the dividend will be a penny a share.
Nvidia also highlighted strong sales of its networking parts, which are increasingly important as companies build clusters of tens of thousands of chips that need to be connected. Nvidia said that it had $3.2 billion in networking revenue, primarily its Infiniband products, which was over three times higher than last year's sales. Nvidia, before it became the top supplier to big companies building AI, was known primarily as a company making hardware for 3D gaming. The company's gaming revenue was up 18% during the quarter to $2.65 billion, which Nvidia attributed to strong demand.
The company also sells chips for cars and chips for advanced graphics workstations, which remain much smaller than its data center business. The company reported $427 million in professional visualization sales, and $329 million in automotive sales. Nvidia said it bought back $7.7 billion worth of its shares and paid $98 million in dividends during the quarter. Nvidia also said that it's increasing its quarterly cash dividend from 4 cents per share to 10 cents on a pre-split basis. After the split, the dividend will be a penny a share.
Re: (Score:3)
MS is already reporting that CUDA is not required or even favored for AI development on Azure (they're using an abstraction layer called Triton).
The software stack really isn't that important anymore.
Re:This kind of shows the markets are completely b (Score:5, Interesting)
George Hotz's company Tiny Corp has been trying to get machine learning working reliably on AMD cards for quite some time with no success. They have narrowed the problem in the closed-source firmware for which AMD refuses to provide specs, but it may also be a hardware issue.
Re:This kind of shows the markets are completely b (Score:5, Insightful)
If you think it's so easy to create a competitor to Nvidia, what's stopping you from starting one? Conspiracy theories often can't compete with actual market realities. If it were actually as easy as you say, more companies would be doing it.
Re: (Score:2)
Nvidia is just an extremely lucky company. It made one great decision, to sedesignll GPUs for the exploding PC gaming market years ago. Instead of riding the usual technology curve through market saturation, competition and price collapse, their GPUs were adopted by cryptocurrency miners just in time to give the product new life. Now crypto mining has become unprofitable for everyone, but those GPUs have taken on a third life running LLMs.
Re:This kind of shows the markets are completely b (Score:5, Insightful)
Not quite. Huang has a history of betting the company on the next big thing before anyone believes in that thing. One time is luck, two times is coincidence, but all the right calls on all the right moments will have something more to say about the company. The latest example of this is AI. Nvidia video cards have not really been GPUs anymore, for quite some time now. They're AI cards that are doing graphics on the side. Huang turned the company and tech to the AI direction before AI really was a thing, and as he has done before, he was there to deliver when the market came along. This is why he is killing it right now.
Everyone else was caught sleeping in the wheel, they are still playing catch up, and there is still no real competitor. Amd is trying to get their GPUs, not AI cards, which they have none, but their GPUs, to do AI via software support. But as is their history with software, it is taking them forever to get it right. Intel just derps out as usual when something not quite theirs comes along, all they are doing about AI is defining an AI PC to mean one that has an Intel cpu. Yes, that's it. Not even having an Intel GPU, and these have been getting at least somewhere in the recent years. A cpu, which is pretty much useless for AI.
The Chinese will surely have something going in a few years, looking at the insane money they are putting into semiconductors, and the unexpectedly fast results they are getting, but the US will most certainly not allow these on the market here. This means Nvidia will be the only game in town in the forseeable future. Considering the bubble nature of the tech cycle, the boom might be over before anyone else even gets their foot in the door. Place your bets accordingly.
Re: (Score:2)
Re: (Score:2)
The P/E of over 55 is also a sign that something is a little out of whack. I'm half jealous I didn't buy NVDA earlier though, but the other half self-righteous in that I didn't gain from no hard work of my own.