The veil is lifted on the accounts of Nvidia, the American semiconductor giant, which dominates the chip market For artificial intelligence with a share close to 90%, the results of which are considered by industry insiders to be a litmus test for evaluating the state of investments in TO THE.
Nvidia, stellar results
Nvidia closes the second quarter of the fiscal year with revenues up to 30 billion dollars, up 15% from the first quarter and 122% from a year ago. Quarterly revenues for Data Centers also grew in double digits at 26.3 billion dollars, 16% more than the first quarter and 154% from a year earlier.
Profit grows by 12% to $16.59 billion, compared to the previous three months and 168% more than the same period last year. The company also announced an additional $50 billion in buybacks.
But the stock falls on Wall Street
Despite the brilliant results, that show a strong and growing demand for artificial intelligence, the chip giant falls on Wall Street and ends up losing more than 6 percentage points. Is it perhaps the fault of a less “stellar” outlook for the results? For the third quarter, revenues are expected to be “more or less 2%” to around 32.5 billion, above the consensus of analysts, but not the most optimistic forecasts that pointed to 37 billion.
Added to this are the acknowledged difficulties in production, to meet growing demand, which compressed gross margins in the quarter and led the management to announce “generic” forecasts on sales of next-generation GPU chips, ‘Blackwell’. “In the fourth quarter, we expect to generate several billion dollars from Blackwell sales,” said the chief financial officer Colette Kress without offering further details.
Is it the outlook’s fault?
“Demand for Hopper remains strong, and the anticipation for Blackwell is incredible,” said Jensen Huang, founder and CEO of Nvidia. “Nvidia has achieved a turnover record-breaking as global data centers are in full swing to modernize their entire compute stack with compute acceleration and generative AI. Blackwell samples, he adds, are shipping to our partners and customers. Spectrum-X Ethernet for AI and NVIDIA AI Enterprise software are two new product categories that have reached significant scale, demonstrating that NVIDIA is a full-stack, data center-scale platform. Across the stack and ecosystem, we are helping frontier model makers, consumer Internet services, and now enterprises. Generative AI will revolutionize every industry.”
On August 26, 2024, the Board of Directors approved an additional $50 billion in stock repurchase authorization, with no expiration. During the first half of fiscal 2025, Nvidia Returns $15.4 Billionto shareholders in the form of share repurchases and cash dividends. At the end of the second quarter, the company had $7.5 billion remaining under its share repurchase authorization.
Nvidia will pay the next dividend quarterly cash earnings of $0.01 per share October 3, 2024 to all shareholders of record on September 12, 2024. The June 7, 2024the chip giant has completed a ten-for-one stock split.
