Nvidia Tops latest stock market Estimates With $44.1 Billion Revenue
Nvidia's strong performance is a testament to the growing demand for AI infrastructure, with the company's stock surging 700% since the release of ChatGPT in November 2022. As the market leader in AI semiconductor technology, Nvidia's earnings report will be closely watched by investors and analysts alike, providing valuable insights into the future of AI demand and investment.
Nvidia reported a record $44.1 billion in revenue for the quarter ending April 27, beating Wall Street forecasts and year-over-year sales growth of 69%, driven by its strong AI hardware business and hyperscalers like Microsoft and Amazon deploying tens of thousands of Blackwell GPUs.
The company's adjusted earnings per share were $0.96, surpassing estimates of $0.93, despite data center revenue falling short of estimates at $39.1 billion. Nvidia's CEO, Jensen Huang, attributed the weak growth to Washington regulations on the company's China dealings, which is expected to result in an $8 billion revenue hit in Q2. The company's stock popped over 6% in premarket trading, with Wall Street shaking off Nvidia's earnings miss due to its strong overall performance.
Nvidia's AI infrastructure business continues to drive growth, with demand remaining strong despite the company's revenue growth moderating to the slowest pace in 2 years. The company is exploring ways to compete in the Chinese market, but its Hopper data center business is no longer an option due to export restrictions. Nvidia's gross margin was its weakest since 2022, but analysts expect margins to recover by year-end.
The company's earnings report is expected to be a major catalyst for the AI infrastructure stocks, with investors parsing the results for any sign that AI demand or investment is waning. Nvidia's shares have risen nearly 25% in the past month, and technical analysis suggests bullish momentum is on the company's side heading into the report.