NVIDIA's Market Cap Soars in a Single Day, Earnings Report Boosts U.S. Stock Market
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NVIDIA's market cap has reached a record high, surpassing Meta's $197 billion U.S. stock record set three weeks ago. The company's Q4 2024 earnings report reveals revenue of $22.1 billion, exceeding analysts' expectations of $20.41 billion, representing a 265% year-over-year increase and a 22% quarter-over-quarter growth. Net income attributable to common shareholders was $12.285 billion, up 765% year-over-year and 33% quarter-over-quarter. For the full year, NVIDIA's fiscal 2024 revenue reached $60.9 billion, a 126% increase year-over-year. GAAP net income attributable to common shareholders was $29.76 billion, up 586% year-over-year, while non-GAAP net income attributable to common shareholders was $32.312 billion, a 288% increase year-over-year.
NVIDIA's highly anticipated Q4 earnings report was released after the market closed on Wednesday, causing its stock to rise in after-hours trading, initially surging over 10% and currently up more than 7%. Boosted by NVIDIA's strong performance, U.S. chip stocks rose across the board in after-hours trading, with Arm (ARM.O), AMD (AMD.O), TSMC (TSM.N), ASML (ASML.O), and Intel (INTC.O) all gaining.
NVIDIA (NVDA.O) reported on Wednesday that its revenue for the first fiscal quarter is expected to exceed expectations, driven by strong demand for its industry-leading AI chips and anticipated improvements in supply chain dynamics. The company forecasts Q1 fiscal 2025 revenue of $24 billion, plus or minus 2%, compared to analysts' average estimate of $22.1 billion. Additionally, NVIDIA's Q4 fiscal performance also surpassed expectations.
NVIDIA's Q4 fiscal year revenue was $22.1 billion, compared to market expectations of $20.41 billion.
Q4 adjusted profit margin was 76.7%, compared to market expectations of 75.4%.
Q4 data center revenue was $18.4 billion, compared to market expectations of $17.21 billion. Expected Q1 revenue is $24 billion, with a fluctuation range of no more than 2%, while market expectations were $21.9 billion.
NVIDIA CEO Jensen Huang stated that accelerated computing and generative AI have reached a tipping point. Demand from companies, industries, and countries worldwide is surging.
Summary of Earnings Call Highlights
NVIDIA CEO Jensen Huang: Overall supply is improving but remains constrained. Supply limitations will persist throughout the year.
NVIDIA executives mentioned during the earnings call that China accounted for a single-digit percentage of the company's data center revenue in Q4, and this is expected to remain similar in the next quarter. Excluding China, data center growth in all other regions has been strong. Historical data shows that in past quarters, China and other restricted regions contributed approximately 20%-25% of NVIDIA's data center revenue.
NVIDIA executives noted that after the U.S. government's export control regulations in October last year, the company's data center revenue from China declined significantly. Currently, NVIDIA has not obtained licenses from the U.S. government to ship restricted products to China but has begun shipping alternative products that do not require licenses to the region.
NVIDIA executives stated during the earnings call that the supply chain for NVIDIA's supercomputers, spanning from wafers and packaging to memory and networking, has seen comprehensive improvements.