The BIG deal about NVDIA earnings and the onset of the AI economy

In this episode, we're going to cover the earnings report that apparently was the most important one for the street - NVDA.

Yesterday, on Feb 21st, NAVDIA posted its Q4 and Full Fiscal 2024 financial results. The results were mind-bogling.

If anybody had any doubt about the progress on the first chapter of AI, all those doubts were put to rest.

NVDIA showed that demand for its chips, that are powering the AI revolution was not only high, but they pretty much dominated this market. This was proven by the strong revenue growth and the huge profit margin they commanded.

Let's take a quick look at their numbers:

NVDA earnings

Numbers & Growth

  • Revenue 22.1B / 20.55B

  • EPS 5.16 / 4.61

  • On both of these, the not only beat street's expectation for this quarter, but next quarter as well - an easy way to say - raise your expectations.

Now, let's take a look at the picture of the trend

Segments - Numbers

  • Overall $7.64 $6.05 $22.10

  • Data Center $1.90 $3.62 $18.4

  • Gaming $2.50 $1.93 $2.90

  • Prof Visual

  • Automotive

Segments - Growth

  • Overall 61% -21% 265%

  • Data Center 97% 11% 409%

  • Gaming

  • Prof Visual

  • Automotive

Brief history of NVIDIA

  • 1993 - Founding - Founded on April 5, 1993, by Jensen Huang, Chris Malachowsky, and Curtis Priem, with a vision to bring 3D graphics to the gaming and multimedia markets.

  • 1999 - IPO - January 22, 1999 at $12/share

  • 1999 - First GPU - GeForce 256 (NV10) - Invents the GPU, the graphics processing unit, which sets the stage to reshape the computing industry.

  • 2006 - CUDA - Opens parallel processing capabilities of GPUs to science and research with unveiling of CUDA® architecture.

  • 2012 - AI - Sparks the era of modern AI by powering the breakthrough AlexNet neural network.

  • 2016 - RTX - Reinvents computer graphics with NVIDIA RTX™, the first GPU capable of real-time ray tracing.

  • 2022 - Omniverse - Plays a foundational role in the building of the metaverse, the next stage of the internet, with the NVIDIA Omniverse™ platform.

How did they do it?

  • Graphics Processing

  • Parallel Processing

    • Gaming

    • Crypto Mining

    • AI

    • General Computing

    • AI tipping point

References

  • https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-fourth-quarter-and-fiscal-2020

  • https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-fourth-quarter-and-fiscal-2021

  • https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-fourth-quarter-and-fiscal-2022

  • https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-fourth-quarter-and-fiscal-2023

  • https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-fourth-quarter-and-fiscal-2024

  • https://investor.nvidia.com/news/press-release-details/2024/NVIDIA-Announces-Financial-Results-for-Fourth-Quarter-and-Fiscal-2024/

  • https://ca.investing.com/equities/nvidia-corp-earnings

Podcast

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