Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesBotsEarnCopy
Nvidia Smashes Q1 2024 Estimates, Plans 10-for-1 Stock Split in June

Nvidia Smashes Q1 2024 Estimates, Plans 10-for-1 Stock Split in June

BeInCryptoBeInCrypto2024/05/23 07:07
By:BeInCrypto

On Wednesday, American technology giant Nvidia (NVDA) announced its Q1 2024 earnings report. The company’s performance exceeded expectations for both sales and earnings, resulting in a significant rise in its stock price.

The company’s performance highlights the ongoing robust demand for artificial intelligence (AI) chips, with notable gains in its data center sales and networking parts.

Nvidia’s Strong Q1 2024 Earnings Boost AI Market Confidence

Nvidia reported revenue of $26.04 billion, surpassing the expected $24.65 billion. The chipmaker also saw a significant increase in net income , reaching $14.88 billion, or $5.98 per share. In comparison, in Q1 2023, Nvidia’s net income was $2.04 billion, or $0.82 per share.

Nvidia’s data center category, including AI chips and components for AI servers, saw a 427% increase in revenue to $22.56 billion. Colette Kress, Nvidia’s Chief Financial Officer (CFO), attributed this growth to shipments of Hopper graphics processors, including the H100 GPU. She highlighted Meta’s Lama 3 announcement, which utilized 24,000 H100 GPUs, as a key driver.

Read more: Top 9 Artificial Intelligence (AI) Cryptocurrencies in 2024

Networking revenue also surged, reaching $3.17 billion, over three times higher than Q1 on the previous year. Nvidia’s InfiniBand products significantly contributed to this growth by supporting the connection of vast chip clusters.

Additionally, Nvidia’s gaming revenue rose 18% to $2.65 billion, driven by strong demand for its hardware. The company also reported $427 million in professional visualization sales and $329 million in automotive sales.

CEO Jensen Huang emphasized that demand for Nvidia’s AI chips remains robust. The company anticipates revenue from its next-generation AI chip, Blackwell, later this year.

According to its official website, the Blackwell GPU architecture features six transformative technologies for accelerated computing. These technologies will help unlock breakthroughs in data processing, engineering simulation, electronic design automation, computer-aided drug design, quantum computing, and generative AI.

“We are poised for our next wave of growth. The Blackwell platform is in full production and forms the foundation for trillion-parameter-scale generative AI,” Huang said.

Nvidia repurchased $7.7 billion of shares during the quarter and paid $98 million in dividends. On the same day, Nvidia announced a 10-to-1 forward stock split to make stock ownership more accessible.

Each record holder of common stock as of June 6, 2024, will receive nine additional shares to be distributed after market close on June 7, 2024. Split-adjusted trading will begin on June 10, 2024.

Nvidia also increased its quarterly cash dividend from $0.04 to $0.10 per share on a pre-split basis. Post-split, the dividend will be $0.01 per share. Looking ahead, Nvidia projects $28 billion in revenue for this quarter.

NVDA’s price skyrocketed after the announcement, surpassing the $1,000 mark. During the US stock market after hours, at 17:32 ET, NVDA traded at $1,019. Yet, its price has now been corrected to $1,007 at the time of writing.

Read more: 9 Best Artificial Intelligence Stocks To Buy in 2024

Optimism surrounding Nvidia’s performance extends to the crypto market , particularly AI-related tokens. In the past seven days, some major AI tokens, such as Fetch.AI (FET), Render (RNDR), SingularityNET (AGIX), and Bittensor (TAO), enjoyed an increase of roughly 10% to 20%. However, shortly after the earnings report release, these tokens entered correction phases, signaling sell-the-news actions from the investors.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

SHIB Jumps 18%, SUI Rebounds to $2.11, and BlockDAG Eyes $1 with 2,520% Gains; Best Crypto for Higher Returns?

Track Shiba Inu’s 18% gain, SUI’s bounce to $2.11, and why experts call BlockDAG the best crypto for higher returns in 2025.SHIB on the Move as Momentum BuildsSUI Price Chart Signals a Potential BreakoutBlockDAG Surges Past $224M – Could Reach $1 in 2025?Closing Thoughts

Coinomedia2025/05/04 17:55
SHIB Jumps 18%, SUI Rebounds to $2.11, and BlockDAG Eyes $1 with 2,520% Gains; Best Crypto for Higher Returns?

$TICS Soars in Presale—Theta and AAVE Take the Stage as Best Altcoins to Buy and Hold for Short Term

Explore the best altcoins to buy and hold for the short term in 2025. Featuring Qubetics, Theta, and AAVE with real-time updates and actionable insights.Qubetics: Leading the Charge in Blockchain InnovationTheta: Pioneering Decentralized Video StreamingAAVE: Dominating the DeFi LandscapeHow Qubetics Stands OutConclusion: The Future Is Bright for Qubetics, Theta, and AAVE

Coinomedia2025/05/04 17:55
$TICS Soars in Presale—Theta and AAVE Take the Stage as Best Altcoins to Buy and Hold for Short Term

Countdown to Gains: Best New Meme Coins for Significant Returns Include BTFD ($2K to $60K!), SPX6900, and ACT

Discover three of the best new meme coins for significant returns, starting with BTFD Coin and its referral rewards system.BTFD Coin: Referral Rewards & Degen DreamsSPX6900: The Meme Economy Meets Market ManiaACT I: The AI Prophecy – Lore, Bots, and Blockchain Destiny

Coinomedia2025/05/04 17:55
Countdown to Gains: Best New Meme Coins for Significant Returns Include BTFD ($2K to $60K!), SPX6900, and ACT

XRP’s First Movers Won Big — Qubetics Is Becoming the Best Crypto to Buy This Month

. XRP's success underscores the importance of recognizing and acting on promising ventures early, a lesson that remains relevant as new projects like Qubetics emerge on the scene.Missed XRP’s Early Gains? Qubetics Is the Best Crypto to Buy This MonthXRP’s Journey: A Testament to Early AdoptionDon’t Let History Repeat Itself: Embrace the Best Crypto to Buy This Month

Coinomedia2025/05/04 17:55
XRP’s First Movers Won Big — Qubetics Is Becoming the Best Crypto to Buy This Month