Nvidia’s Q4 financials beat expectations
Nvidia beat analysts’ forecasts for both earnings per share and revenue in the fourth quarter of its financial year. The company’s strong performance was driven mainly by its data centre activities, which generated revenue of $62.3 billion (€52.8 billion), surpassing analysts’ estimates of $60.2 billion. Nvidia’s CFO attributed this success to growth among hyperscalers, which accounted for slightly more than half of the data centre segment’s revenue.
Moreover, Nvidia saw substantial year-on-year growth across several segments within its data centre operations. Computing revenue rose by 58%, while networking revenue increased by no less than 263% to $11 billion.
Nvidia has recently made major strides in the field of AI. At the Consumer Electronics Show (CES) in January, the company launched its latest AI superchip, Vera Rubin, and expanded its partnership with Meta to supply both Blackwell and Rubin AI processors, as well as Grace CPU servers for a sizeable standalone deployment.
Despite these positive developments, Nvidia’s share price has been relatively muted compared with its strong financial results. By Wednesday afternoon, Nvidia’s share price had risen by just over 5% since the start of the year. This performance lags behind Intel, whose share price has climbed by almost 27% this year.
Some analysts suggest that the gap between Nvidia’s business performance and its share price is a reflection of investors’ uncertainty about the longevity of the AI trend. They question whether the current excitement around AI is merely a temporary surge or the beginning of a lasting technological revolution.
Business AM
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