Nvidia reported results for the first quarter of fiscal 2024. With demand for AI chips rising, earnings came in above expectations, CNBC reports.
For the period, Nvidia’s revenue stood at $7.19 billion versus $6.52 billion expected. Adjusted earnings per share rose from $0.92 to $1.09.
The data-centre products division generated $4.28 billion, versus $3.9 billion expected. This was 14% higher than a year earlier.
Nvidia said profits were driven by demand for its graphics chips from cloud-service providers. Large companies also showed interest in processors for training and deploying generative AI technologies using accelerators.
Nvidia’s gaming segment, which includes PC graphics-card production, reported revenue fell 38% to $2.24 billion, versus $1.98 billion expected. The company attributed this to macroeconomic conditions and the ramp-up of its consumer GPUs lineup.
The automotive segment, including chips and software for autonomous-vehicle development, earned about $300 million. Year over year, growth was 114%.
Net income for the quarter reached $2.04 billion ($0.82 per share) versus $1.62 billion ($0.64) for the same period a year earlier. Total revenue declined 13%.
For the current quarter, Nvidia expects revenue of $11 billion, +/- 2%. This is about 50% above Wall Street expectations.
Following the report, the shares rose about 26% in after-hours trading. If this pace persists into the open, Nvidia could surpass Apple’s record single-day gain in market value.
In 2023, the chipmaker’s stock rose more than 100%.
In March, Nvidia’s chief technology officer Michael Kagan doubted the value of cryptocurrencies.
In April, the chipmaker released a tool for creating secure AI models.