Nvidia reports Q1 revenue down 13% YoY to $7.19B, vs. $6.52B est., Data Center revenue up 14% YoY, and a Q2 revenue forecast above estimates; NVDA jumps 25%+
- Nvidia reported first-quarter earnings for its fiscal 2024 on Wednesday, with a stronger-than-expected forecast that drove shares up 26% in extended trading.
CNBCKif Leswing
Context & Ripple Effects
Nvidia entered this quarter after a record $7.1B quarter in 2021 in which both gaming and data center businesses were expanding. This report instead shows a company managing an overall revenue decline while its data center segment continued to grow, making the outlook more consequential than the headline year-over-year comparison.
Later coverage makes this quarter an early inflection point in Nvidia’s data-center-led arc: by early 2024, the company reported $18.4B in quarterly Data Center revenue, far above the level implied by this period.
First-order effects
Nvidia’s above-estimate Q2 forecast immediately reset investor expectations for the near-term recovery, driving a sharp after-hours move in NVDA despite the Q1 revenue decline.
Data Center becomes the clearest source of resilience in the reported mix, with 14% year-over-year growth offsetting weakness elsewhere in the business.
Second-order effects
The forecast raises the bar for rival chip suppliers: demand evidence is shifting market attention toward their ability to serve data-center workloads rather than merely match Nvidia in traditional graphics markets.
Customers and infrastructure partners gain a clearer signal that Nvidia expects data-center demand to remain material, supporting planning around compute deployments and related capacity.
Third-order effects
If data-center growth repeatedly cushions cyclical declines in Nvidia’s other businesses, the company’s valuation and competitive position become increasingly tied to AI and cloud-compute infrastructure.
This is an early data point in a market where compute availability can become a product constraint, concentrating strategic leverage among suppliers that can deliver high-performance data-center systems at scale.
The trend: Nvidia’s results point to an AI infrastructure supercycle in which data-center demand increasingly determines semiconductor growth and market leadership.
This Nvidia changes the whole narrative around AI and demand looking ahead in the enterprise. Bullish for MSFT, Google, Meta, Apple, and others. Historical inflection point possibly in AI Revolution with Nvidia the key barometer the whole Street and industry was watching.
Nvidia CEO Jensen Huang warned of the risk of “enormous damage” to the US tech industry over the escalating US-China chip war, the FT reports. Huang said US export controls had left Nvidia with “our hands tied behind our back” and unable to sell advanced chips in one of its... ht…
NVIDIA Q1'24 earnings are out. I'll have an article up later, but a short summary is that while NVIDIA has been impacted by the tech downturn, the DC market has insulated them fairly well. Revenue dropped 13% YoY, but gross margin is still 64.6% DC revenue up 14% YoY [image]
NVDA 1QFY24 - Data center revenue acceleration - Generative AI boosts DC results and 2Q guidance - Secures additional supply - Gaming revenue is still below the peak; 2 straight quarters of growth - 3 straight quarters of auto growth; $14b pipeline for 6-yrs, up from $11b $NVDA
2/2 “In January, the new demand was incredibly steep,” Nvidia CEO Jensen Huang said. “We had to place additional orders, and we procured substantially more supply for the second half” of 2023, the report said. $NVDA $TSM https://www.reuters.com/...
$NVDA is up $220 billion in market cap after hours. That's equivalent to: — 1x Costco — 1x Greece — 1x Bernard Arnault — 1x Entire German auto industry — 4x Cash left in the US Treasury
This is not a shitcoin. Or a microcap. This is $NVDA, Nvidia's chart after earnings. Up 15%, a straight line up. Its YTD performance is over 145%. $NVDA just hit an all time high and gained 113 BILLION!!! in marketcap. [image]
In 2006, when AMD bought ATI they paid ~$5B for the #2 player (companies always seem to buy the #2). Intel could have probably gotten NVDA for $8-10B, a big deal, though probably not for peak Intel. Tomorrow $1T??🚀 We never succeeded in getting Intel to prioritize graphics.
Shares of Nvidia, the world's most valuable listed semiconductor company, rocketed as much as 28% after the bell to trade at $391.50, their highest level ever, increasing its stock market value by about $200b to over $950b. https://www.reuters.com/... $NVDA be, 1 trilli here we c…
Quadrupled revenue in 4 years... We will probably hear this again once it actually posts these earnings. It's crazy, but almost entirely driven by data center boosted by #AI. https://twitter.com/...
“Our (@nvidia) 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” https://nvidianews.nvidia.com/ ... #H…
And some told us that the US chips industry would be crushed because of last October's export control restrictions on sales to China... https://www.cnbc.com/...