Record results

Despite analysts' forecasts of $18 billion, the graphics chip giant is forecasting sales of $20 billion for the current quarter. However, despite the anticipation of these results, Nvidia shares were down 1% in after-hours trading.

On Tuesday evening, the microprocessor manufacturer reported net earnings of $9.2 billion, or $3.71 per share, compared with $680 million, or 27 cents per share, the previous year. Adjusted earnings per share of $4.02 exceeded the FactSet consensus of $3.37.

The data center products division saw revenues quadruple (+279%) to $14.5 billion, thanks to growing demand for computing power for artificial intelligence applications.

Jensen Huang, CEO of Nvidia, said in a statement that this significant growth reflects the ongoing transition to accelerated computing and generative AI. Nvidia also announced several advances and partnerships, including with Microsoft Azure, Google Cloud Platform, Oracle Cloud Infrastructure and several leading companies.

Outlook

Despite these positive results, concerns about the situation in China persist, and the share price fell by 1.74% after the close. For the fourth quarter of fiscal 2024, Nvidia forecasts sales of $20.00 billion, GAAP and non-GAAP gross margins of 74.5% and 75.5% respectively, and GAAP and non-GAAP operating expenses of around $3.17 billion and $2.20 billion respectively.

Analysts now anticipate sales growth of +402% between 2022 and 2027, with an operating margin (EBIT) in excess of 60%, giving estimated sales of $135.3 billion for fiscal year 2028 (2027).