The American chip design giant Nvidia announced its quarterly earnings results for the fourth quarter and the entire past year after the close of Wall Street on Wednesday. The results showed that Nvidia's profits surpassed expectations, supported by demand for its leading AI chips, Blackwell. However, Nvidia's results indicate a slowdown in the company's earnings growth.
The key points in Nvidia's earnings report are: Financial Performance: Fourth quarter revenues rose by 78% year-on-year to $39.3 billion, exceeding analyst expectations of $38.2 billion. Nvidia's earnings per share (EPS) reached $0.89 during the fourth quarter, surpassing Wall Street expectations of $0.84. Data center revenues increased to $35.6 billion in the fourth quarter, with a 93% rise compared to the same period last year, marking the first time growth has slowed to below 100% since the second quarter of fiscal year 2024. Nvidia Product Developments: Sales of Nvidia's leading Blackwell Architecture chips increased by $11 billion during the fourth quarter, the fastest growth recorded for any Nvidia product in the company's history. Gaming chip revenues declined by 11% year-on-year to $2.5 billion, due to supply constraints surrounding the latest gaming chips. Nvidia's Future Outlook: Nvidia expects its revenues in the first quarter of the year to rise to $43 billion, with the possibility of an increase or decrease of about 2%. Gross margin is expected to decline to between 70.6% and 71%, plus or minus 0.5%, with increased spending on new product development. Nvidia Stock Now:
Nvidia's stock (NASDAQ: NVDA) fell by 1.5% during pre-market trading to record $129.32, in light of the slowdown in growth, after closing the previous day, Wednesday, up by 3.67% at $131.28.
