Summary
NVIDIA Corporation reported its first-quarter fiscal year 2024 results, showcasing resilience and strategic shifts. While overall revenue declined year-over-year by 13% to $7.19 billion, this was driven by a significant 41% drop in the Graphics segment, largely due to normalized channel inventory and macroeconomic slowdown impacting gaming. However, the crucial Compute & Networking segment demonstrated strong growth, with a 21% year-over-year increase in revenue to $4.46 billion, fueled by burgeoning demand for AI and large language models. This segment's performance was bolstered by sales to large consumer internet companies and cloud service providers, highlighting NVIDIA's pivotal role in the AI infrastructure build-out. The company also saw a notable sequential improvement in revenue, up 19% from the previous quarter, indicating a recovery and increasing demand, particularly in Data Center applications. Profitability remained strong, with net income rising 26% year-over-year to $2.04 billion and diluted EPS increasing by 28% to $0.82. NVIDIA continues to manage its supply chain actively, preparing for new product architectures and navigating global trade complexities, including recent U.S. export controls impacting sales to China.
Financial Highlights
54 data points| Revenue | $7.19B |
| Cost of Revenue | $2.54B |
| Gross Profit | $4.65B |
| R&D Expenses | $1.88B |
| SG&A Expenses | $633.00M |
| Operating Expenses | $2.51B |
| Operating Income | $2.14B |
| Interest Expense | $66.00M |
| Net Income | $2.04B |
| EPS (Basic) | $0.08 |
| EPS (Diluted) | $0.08 |
| Shares Outstanding (Basic) | 24.70B |
| Shares Outstanding (Diluted) | 24.90B |
Key Highlights
- 1Compute & Networking segment revenue grew 21% year-over-year to $4.46 billion, driven by strong demand for AI and large language models.
- 2Overall revenue declined 13% year-over-year to $7.19 billion, primarily due to a 41% decrease in the Graphics segment.
- 3Net income increased 26% year-over-year to $2.04 billion, with diluted EPS up 28% to $0.82.
- 4The company saw a sequential revenue increase of 19%, signaling a positive trend and demand recovery.
- 5Data Center revenue, a key driver for AI, grew 14% year-over-year, supported by Hopper and Ampere architectures.
- 6NVIDIA is actively managing supply chain complexities, including transitioning to new product architectures and navigating U.S. export controls impacting sales to China.
- 7Total cash, cash equivalents, and marketable securities stood at $15.32 billion, providing strong liquidity.