Nvidia posts revenue as demand for AI chips grows

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.