NVIDIA Earnings Report Q1 2024: What You Need To Know

NVIDIA Corporation, a pioneering force in the world of graphics processing units (GPUs) and artificial intelligence (AI), has once again outperformed expectations with its Q1 2024 earnings report. For the first time, NVIDIA’s stock price has hit a four-digit figure, pushing its market capitalisation beyond $2.5 trillion and securing its position as the third-largest company globally, trailing only Microsoft and Apple. 

On 22 May 2024, NVIDIA’s earnings announcement sent ripples through the financial markets, with its share price increasing by 6% in after-hours trading. The company reports record-breaking revenue of $26 billion for Q1 2024, an impressive 18% increase from the previous year. This growth underscores NVIDIA’s robust market position and its ability to harness the surging demand for AI and gaming technologies. Additionally, the company’s net income also saw a boost, increasing to $1.91 billion compared to $1.29 billion in Q1 2023. Again, this increase could be attributed to NVIDIA’s efficient cost management and strategic investments in high-growth areas. 

What’s next for NVIDIA?

Broadly speaking, this earnings report solidifies NVIDIA’s position as a leader in AI hardware. The company provided a strong outlook for the next quarter, forecasting revenue growth to somewhere around $28 billion. Gross margins are expected to increase to between 74.8% and 75.5%, while costs are anticipated to rise in the low 40% range, highlighting NVIDIA’s status as a growth stock. 

As founder and CEO of NVIDIA, Jensen Huang aptly stated: “the next industrial revolution has begun” alluding to strong continued company performance. “AI will bring significant productivity gains to nearly every industry and help companies be more cost and energy efficient while expanding revenue opportunities.”

What’s next for AI?

AI is here to stay and is transforming everything from the way we work to the way we play. The strong earnings report suggests that AI will continue to grow and expand to new areas such as healthcare and industries. With its cutting-edge technologies and strategic vision, NVIDIA is well-positioned to lead the charge in this new era of technological innovation.