Nvidia: "No bees no honey, no work no money"

2023年5月25日

Graphics-chip maker Nvidia NVDA late Wednesday crushed Wall Street's targets for its fiscal first quarter on record data-center sales. NVDA stock rocketed in extended trading.

The Santa Clara, Calif.-based company earned an adjusted $1.09 a share on sales of $7.19 billion in the quarter ended April 30. Analysts polled by FactSet had expected Nvidia earnings of 92 cents a share on sales of $6.53 billion. On a year-over-year basis, Nvidia earnings dropped 20% while sales declined 13% amid continued weak gaming-chip sales.

For the current quarter, Nvidia forecast sales of $11 billion, up 64% year over year. That target obliterated Wall Street's consensus estimate of $7.2 billion for fiscal second-quarter revenue.

Chief Executive Jensen Huang said his company is ramping up production to meet the massive demand for artificial intelligence technology.
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📍 Changes in the industry

The computer industry is going through two simultaneous transitions — accelerated computing and generative AI," Huang said in a news release. "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."

He added, "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."

In the first quarter, Nvidia's data-center sales rose 14% year over year to $4.28 billion.

That growth reflected strong demand from large consumer internet companies and cloud service providers for its graphics processing units and related tech, Chief Financial Officer Colette Kress said in a statement. Customers are using its chips for artificial intelligence applications, including generative AI, she said.
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📍 Gaming-Chip Sales Remain Soft

Meanwhile, Nvidia's gaming-chip business saw sales decline 38% year over year to $2.24 billion in the first quarter. The decrease was the result of weaker demand due to the macroeconomic slowdown and lower shipments to normalize channel inventory levels, Kress said.

Wall Street analysts gushed about Nvidia's beat-and-raise report.

"Nvidia delivered strong upside in terms of reported fiscal Q1 results, as well as fiscal Q2 guide," Wells Fargo analyst Aaron Rakers said in a note to clients. He called Nvidia's report "positive" in all caps with an exclamation point.
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❤️ How do you like yesterday's +25% postmarket? What are your expectations for today, friends?