NVIDIA Announces Financial Results for First Quarter Fiscal 2024, Gaming Down 38% YoY, Stock still Jumps +25%

[TheLostSwede]

NVIDIA today reported revenue for the first quarter ended April 30, 2023, of $7.19 billion, down 13% from a year ago and up 19% from the previous quarter. GAAP earnings per diluted share for the quarter were $0.82, up 28% from a year ago and up 44% from the previous quarter. Non-GAAP earnings per diluted share were $1.09, down 20% from a year ago and up 24% from the previous quarter.

"The computer industry is going through two simultaneous transitions—accelerated computing and generative AI," said Jensen Huang, founder and CEO of NVIDIA. "A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.




"Our entire data center family of products—H100, Grace CPU, Grace Hopper Superchip, NVLink, Quantum 400 InfiniBand and BlueField-3 DPU—is in production. We are significantly increasing our supply to meet surging demand for them," he said.

During the first quarter of fiscal 2024, NVIDIA returned to shareholders $99 million in cash dividends.

NVIDIA will pay its next quarterly cash dividend of $0.04 per share on June 30, 2023, to all shareholders of record on June 8, 2023.

Outlook
NVIDIA's outlook for the second quarter of fiscal 2024 is as follows:

• Revenue is expected to be $11.00 billion, plus or minus 2%.
• GAAP and non-GAAP gross margins are expected to be 68.6% and 70.0%, respectively, plus or minus 50 basis points.
• GAAP and non-GAAP operating expenses are expected to be approximately $2.71 billion and $1.90 billion, respectively.
• GAAP and non-GAAP other income and expense are expected to be an income of approximately $90 million, excluding gains and losses from non-affiliated investments.
• GAAP and non-GAAP tax rates are expected to be 14.0%, plus or minus 1%, excluding any discrete items.

Highlights
NVIDIA achieved progress since its previous earnings announcement in these areas:

Data Center

• First-quarter revenue was a record $4.28 billion, up 14% from a year ago and up 18% from the previous quarter.
• Launched four inference platforms that combine the company's full-stack inference software with the latest NVIDIA Ada, NVIDIA Hopper and NVIDIA Grace Hopper processors.
• Announced that Google Cloud is the first cloud provider offering the new NVIDIA L4 Tensor Core GPU to accelerate generative AI applications.
• Introduced NVIDIA AI Foundations to help businesses create and operate custom large language models and generative AI models trained with their own proprietary data for domain-specific tasks.
• Unveiled the NVIDIA cuLitho software library for computational lithography to accelerate the design and manufacturing of next-gen semiconductors.
• Expanded its partners offering new products and services based on the NVIDIA H100 Tensor Core GPU — including Amazon Web Services, Google Cloud, Microsoft Azure and Oracle Cloud Infrastructure.
• Partnered with ServiceNow to build generative AI across enterprise IT.
• Announced a collaboration with Medtronic to build an AI platform for medical devices.
• Joined with Dell Technologies in Project Helix to deliver full-stack solutions to help enterprises build and deploy trustworthy generative AI applications.
• Announced it is integrating NVIDIA AI Enterprise software into Microsoft's Azure Machine Learning to help enterprises accelerate their AI initiatives.

Gaming

• First-quarter revenue was $2.24 billion, down 38% from a year ago and up 22% from the previous quarter.
• Announced the GeForce RTX 4060 family of GPUs, bringing the advancements of NVIDIA Ada Lovelace architecture and DLSS, starting at $299.
• Launched the GeForce RTX 4070 GPU based on the Ada architecture, which enables DLSS 3, real-time ray tracing and the ability to run most modern games at over 100 frames per second at 1440p resolution.
• Added 36 DLSS gaming titles, bringing the total number of games and apps to 300.
• Made path tracing available for the first time on a major gaming title through collaboration with CD PROJEKT RED on an update to Cyberpunk 2077.
• Expanded GeForce NOW's game titles to more than 1,600, including the first Microsoft Xbox game, Gears 5.

Professional Visualization

• First-quarter revenue was $295 million, down 53% from a year ago and up 31% from the previous quarter.
• Announced NVIDIA Omniverse Cloud, a fully managed service running in Microsoft Azure, for the development and deployment of industrial metaverse applications.
• Expanded its collaboration with Microsoft to connect Microsoft 365 applications with Omniverse.
• Announced six new NVIDIA RTX GPUs for mobile and desktop workstations based on the Ada architecture.

Automotive

• First-quarter revenue was a record $296 million, up 114% from a year ago and up 1% from the previous quarter.
• Announced that its automotive design win pipeline has grown to $14 billion over the next six years, up from $11 billion a year ago.
• Announced that the world's leading electric vehicle maker BYD will extend its use of NVIDIA DRIVE Orin across new models.

CFO Commentary
Commentary on the quarter by Colette Kress, NVIDIA's executive vice president and chief financial officer, is available at https://investor.nvidia.com/.

Conference Call and Webcast Information
NVIDIA will conduct a conference call with analysts and investors to discuss its first quarter fiscal 2024 financial results and current financial prospects today at 2 p.m. Pacific time (5 p.m. Eastern time). A live webcast (listen-only mode) of the conference call will be accessible at NVIDIA's investor relations website, https://investor.nvidia.com. The webcast will be recorded and available for replay until NVIDIA's conference call to discuss its financial results for its second quarter of fiscal 2024.

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[TheLostSwede]

A couple of helpful graphics to go with the figures.

https://twitter.com/i/web/status/1661474852308660224

 

[R0H1T]

The AI/HPC/DC story would eventually turn sour ~ the question is when!

A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.

Right & in the process leave possibly millions unemployed who buy your overpriced GPU's ~ good going JHH

 

[mama]

So am I understanding this right...? Nvidia made a killing in June to September 2022. Revenue nosedived in January to April 2023 and has recovered between June to September 2023. I guess the recovery is a projected recovery since were not yet in the June quarter. Fingers crossed that recovery eventuates and Nvidia can keep charging for those graphic cards like they do. Or maybe it doesn't happen and the message might be received

 

[Bomby569]

Gamers decided to reward nvidia in the last two quarters by buying more of their overpriced crap. They are now at the same levels as Q4 of 2020. This is insane.
I don't think Jensen is doing anything wrong and gamers deserve what they get.

Also why are they one year ahead? it's unnecessarily confusing.

 

[Daven]

$11 billion outlook and 25% jump in after hours trading!!! Holy crap!

AMD is up almost 10% but Intel dropped a tenth of a percent in after hours.

 

[TheinsanegamerN]

Gamers decided to reward nvidia in the last two quarters by buying more of their overpriced crap. They are now at the same levels as Q4 of 2020. This is insane.
I don't think Jensen is doing anything wrong and gamers deserve what they get.

Gamers are CONSOOMers, and always get what they deserve. The only reason the gaming market is monetized in such an atrocious manner is because it works, and gamers willingly feed billions into the machine they hate so much.

Also why are they one year ahead? it's unnecessarily confusing.

Because it shot their stock price up 25%. Jensen needed a new yacht.

Now whether they actually hit those numbers is a future jensen problem.

 

[Bomby569]

Because it shot their stock price up 25%. Jensen needed a new yacht.

Now whether they actually hit those numbers is a future jensen problem.

their stock price is actually insane and it doesn't seem to stop, literally now today in pre market, i doubt that is sustainable. Idk.

 

[john_]

$11 billion outlook and 25% jump in after hours trading!!! Holy crap!

AMD is up almost 10% but Intel dropped a tenth of a percent in after hours.

Intel looks at what is happening with AI and realizing that they should had invested in GPUs 10+ years ago if not just never stopping investing in GPUs.
I think if they had any thought off killing their new GPU department, that thought is dead now. They need GPUs if they want to have a future.

 

[TheLostSwede]

their stock price is actually insane and it doesn't seem to stop, literally now today in pre market, i doubt that is sustainable. Idk.

The traders are using "AI" based on Nvidia hardware...

 

[Bomby569]

Intel looks at what is happening with AI and realizing that they should had invested in GPUs 10+ years ago if not just never stopping investing in GPUs.
I think if they had any thought off killing their new GPU department, that thought is dead now. They need GPUs if they want to have a future.

AMD still doesn't have a alternative to DGX at they are doing gpu's for decades now. Intel would have to pull a very big rabbit out of their hat. This nvidia growth is not based on ADA.

 

[Daven]

Intel looks at what is happening with AI and realizing that they should had invested in GPUs 10+ years ago if not just never stopping investing in GPUs.
I think if they had any thought off killing their new GPU department, that thought is dead now. They need GPUs if they want to have a future.

Intel has no future under their current business model. They need to pivot 100% towards a fab for hire model and stop making their own products. TSMC revenue is forecast to be almost double Intel in the quarters to come.

It is too late for Intel in the GPU/AI space. Just ask MS when it comes to mobile if you can be years late to the party.

 

[nexus290]

AMD still doesn't have a alternative to DGX at they are doing gpu's for decades now. Intel would have to pull a very big rabbit out of their hat. This nvidia growth is not based on ADA.

AMD has a potential response to it in the form of MI300 , also AMD will give investors a detailed look for their AI push on June 13. We should hear more about it then, also MI300 is an insane piece of engineering so do not count it out it will also power the next fastest Supercomputer El Captain which will use both general purpose and A.I. on one piece of silicon. Where AMD really faces a more uphill task is the software side. How many of us realise nvidia's strengths lie very strongly on the software side of things ?

 

[Pumper]

This smells like the NFT and Metaverse hype (both are dead already).

 

[nexus290]

This smells like the NFT and Metaverse hype (both are dead already).

NFT unfortunately is not dead I wish it was.

 

[Yougotonejob]

NVIDIA try to be Apple, create close loop of hardware and software for computation and AI.
AMD is going to be Android more open source more general purpose computation and AI.
I think in AI if a no company want to pay the "Apple Premium Tax" like experience, but they don't have a choice now.
Need something to replace CUDA. if there is anything give a opensource CUDA like library then NVIDIA will be in trouble.

 

[Bomby569]

AMD has a potential response to it in the form of MI300 , also AMD will give investors a detailed look for their AI push on June 13. We should hear more about it then, also MI300 is an insane piece of engineering so do not count it out it will also power the next fastest Supercomputer El Captain which will use both general purpose and A.I. on one piece of silicon. Where AMD really faces a more uphill task is the software side. How many of us realise nvidia's strengths lie very strongly on the software side of things ?

i'm not counting it out, but i also don't give them credit before we see a proper alternative. Like you said they have a uphill battle

 

[TheinsanegamerN]

NFT unfortunately is not dead I wish it was.

Trading volume, value, and demand are all 99.9% lower now then at their peak. A single mcdonalds does more business in a day then most NFT exchanges.

It is dead. Some may wish otherwise and attempt to kickstart this zombie, but its dead.

their stock price is actually insane and it doesn't seem to stop, literally now today in pre market, i doubt that is sustainable. Idk.

Stock valuation is over 50x income. That is totally unsustainable.

The correction is gonna SUCK.

Intel has no future under their current business model. They need to pivot 100% towards a fab for hire model and stop making their own products. TSMC revenue is forecast to be almost double Intel in the quarters to come.

It is too late for Intel in the GPU/AI space. Just ask MS when it comes to mobile if you can be years late to the party.

This is utter lunacy and reminds me of the people who demanded that the only way AMD would survive is if they sold off their CPU business and focused only on GPUs. Imagine if they had actually done that.

 

[john_]

How many of us realise nvidia's strengths lie very strongly on the software side of things ?

Nvidia describes itself as a "software company that also happens to build the hardware where that software will run".
And they don't describe themselves this way lately. The first time I read that was back around 2005 I think. Huang was saying it from back then.

 

[RedBear]

This smells like the NFT and Metaverse hype (both are dead already).

AI appears to be more useful than those hypes, though. The only real way for an AI collapse is government intervention, but while it's possible that the EU will do something sooner or later, the raison d'etre of the EU is regulating everything and anything, I'm less sure about things in the US, because politicians there will fear that if they regulate AI too much China would beat them in this area (which has many implications, including reducing the impact of a shrinking population in working age).

 

[Icon Charlie]

I do a lot of investing but you will never see me at this moment buy into the hype or some sort of hype that is currently going on. It's another bubble being created. What should be noted is how BAD their gaming sector is doing.

Here is a video of interest.

 

[64K]

Also why are they one year ahead? it's unnecessarily confusing.

It's because their Fiscal Year is from February to January. They don't report financials based on our Calendar Year. Most companies don't. So their 2024 Fiscal Year runs from January 2023 to February 2024. Their Fiscal Quarter 1 ended in April 2023 but we are in their Fiscal Year 2024 so that is how they are reporting their finances for Q1.

When taking into perspective the current state of the Tech Sector in general, Nividia is in good shape financially. Investors know this and that is why Nvidia's Share Price is up 108% over the past year. Their share price has surpassed by a lot even the share price during the height of the Pandemic when hundreds of millions of people were spending Stimulus Checks and savings on hardware because they were quarantined and bored.

That is not what most of us want to hear but that is the financial reality.