Nvidia posted its earning report for Q4 which beats the Wall Street’s forecast for earning and sales. As stated by Nvidia the earning and revenue during the current quarter would be better than expected, even against elevated expectations for massive growth. The company has been the primary beneficiary of the recent technology industry obsession with large artificial intelligence models, which are developed on the company’s pricey graphics processors for servers.
Stocks of Nvidia rose about 10% in extended trading.
Nvidia earning report
Nvidia earning report as compared with what Wall Street was expecting for the quarter ending in January, based on a survey of analysts by LSEG, formerly known as Refinitiv:
Nvidia’s earning per share: $5.16 adjusted vs. $4.64 expected.
Nvidia’s revenue: $22.10 billion vs. $20.62 billion expected.
Nvidia said it expected $24.0 billion in sales in the current quarter.
Analysts polled by LSEG were looking for $5.00 per share on $22.17 billion in sales.
Nvidia CEO Jensen Huang addressed investor fears that the company may not be able to keep up this growth or level of sales for the whole year on a call with analysts.
“Fundamentally, the conditions are excellent for continued growth” in 2025 and beyond, Huang told analysts. He says demand for the company’s GPUs will remain high due to generative AI and an industry-wide shift away from central processors to the accelerators that Nvidia makes.
Increase in net income
Net income reported by Nvidia was $12.29 billion during the quarter, or $4.93 per share, up 769% versus last year’s $1.41 billion or 57 cents per share.
Nvidia’s total revenue rose 265% from a year ago, based on strong sales for AI chips for servers.
Those sales are reported in the company’s Data Center business, which now comprises the majority of Nvidia’s revenue. Data center sales were up 409% to $18.40 billion. Over half the company’s data center sales went to large cloud providers.
The company’s gaming business, which includes graphics cards for laptops and PCs, was merely up 56% year over year to $2.87 billion. Graphics cards for gaming used to be Nvidia’s primary business before its AI chips started taking off, and some of Nvidia’s graphics cards can be used for AI.
Nvidia stock climbs
Following the robust earning report, Nvidia’s shares experienced a significant uptick, climbing over 7% in New York’s after-market trading. The stock’s one-year performance stands impressively at over 225%, with a notable 40% increase since the onset of 2024.
Market capitalization of Nvidia has experienced an exponential surge, expanding by more than $400 billion since the beginning of the year, elevating its worth to a $1.67 trillion.
Nvidia Stock Value Today
The incredible run of Nvidia stock has been well-documented along with most of the company’s history and ground-breaking products. As daunting as it may seem now, imagine what a small investment in a company like Nvidia in 2018 would be worth today. Nvidia stock value from 2018 with a $100 investment in its stock would have grown to more than 100 times the original investment by today the day of the earning.
The price of Nvidia in Dec 2018 was around $43 which today on the day of the earning report is $674.
If one would have bought 100 shares of Nvidia in 2018 for $4300 it would have fetched a whopping $67400 for the same today on the day of the earning report.
Nvidia’s IPO and stock split
The company went public in January 1999, with its shares priced at $19.69 each. Nvidia had 4 stock splits till 2007.
Nvidia dividends
The company paid out its first dividend in 2006, and the next payout was made six years later in 2012. Since November 2012, Nvidia has declared a dividend every quarter, adding to the value of the investment.
Nvidia’s future
The Nvidia is going strong and it now ranks sixth in the hierarchy of the world’s largest companies, just below Apple, Microsoft, Saudi Aramco, Alphabet and Amazon.
