Summary
NVIDIA Corporation (NVDA) reported exceptionally strong financial results for the second quarter of fiscal year 2024, with revenue surging 101% year-over-year to $13.51 billion. This growth was primarily driven by a remarkable 171% increase in Data Center revenue, reaching $10.32 billion, fueled by massive demand for its AI computing platforms, particularly from cloud service providers (CSPs) and large internet companies. The company's gross margin also significantly improved to 70.1% from 43.5% in the prior year's quarter, reflecting the favorable shift in revenue mix towards higher-margin Data Center products and a reduction in inventory provisions. Net income experienced an explosive growth of 843% year-over-year, reaching $6.19 billion, translating to diluted earnings per share of $2.48, up from $0.26 in the same period last year. NVIDIA's strong performance highlights its leading position in the AI infrastructure market, with continued robust demand visibility extending into the next fiscal year. The company also announced a substantial increase to its share repurchase program, underscoring its confidence in future performance and commitment to returning capital to shareholders.
Financial Highlights
55 data points| Revenue | $13.51B |
| Cost of Revenue | $4.04B |
| Gross Profit | $9.46B |
| R&D Expenses | $2.04B |
| SG&A Expenses | $622.00M |
| Operating Expenses | $2.66B |
| Operating Income | $6.80B |
| Interest Expense | $65.00M |
| Net Income | $6.19B |
| EPS (Basic) | $0.25 |
| EPS (Diluted) | $0.25 |
| Shares Outstanding (Basic) | 24.73B |
| Shares Outstanding (Diluted) | 24.99B |
Key Highlights
- 1Revenue for Q2 FY2024 reached $13.51 billion, a 101% increase year-over-year, significantly exceeding market expectations.
- 2Data Center revenue grew by 171% year-over-year to $10.32 billion, driven by high demand for AI and generative AI solutions from CSPs and large internet companies.
- 3Gross margin expanded significantly to 70.1% from 43.5% in the prior year's quarter, indicating strong pricing power and improved product mix.
- 4Net income soared to $6.19 billion, a 843% increase year-over-year, with diluted EPS of $2.48.
- 5The company announced an additional $25 billion increase to its share repurchase program, signaling strong confidence in its future financial health.
- 6Operating expenses increased by 10% year-over-year, primarily due to investments in compensation and stock-based compensation to support growth.
- 7Gaming revenue showed resilience, increasing 22% year-over-year, benefiting from the normalization of channel inventory for its GeForce RTX 40 Series GPUs.