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Nvidia did it again.
The company reported blowout numbers late Wednesday, squelching any anxiety growing among investors this week who feared the purest AI play in the market would fail to meet the moment. In premarket trading on Thursday, the stock rose as much as 13%.
Last week, we noted some Wall Street analysts have worked overtime to properly analogize a story that is both a facsimile and the genuine object — a stock around which the entire market and its favorite meme, AI, revolves, and yet which has delivered the goods now for four quarters running.
And while all the perspective some investors will need to understand Nvidia’s import to this rally comes from its stock price (up 300% since the start of 2023), Wednesday’s fundamental update offers helpful — and more impressive — landmarks as well.
In the fourth quarter of fiscal 2024, its just-completed fiscal year, Nvidia’s data center segment, which realizes most of the demand for its high-end chips that power AI applications, saw revenue tally $18.4 billion. In the same quarter a year ago, the entire company’s revenue totaled $6.1 billion.
Net income in its entire fiscal 2023 tallied $8.4 billion; in the fourth quarter of 2023, net income reached $12.8 billion. Its annual profits in 2024 reached $32.3 billion.
And in its fiscal 2024, Nvidia’s revenue grew 126% from the prior year; in the fourth quarter, revenue was up 265% from the prior-year period. Net income on an annual basis rose 286%; in the fourth quarter, this measure of profits was up 491% from the prior year period.
In its fiscal 2023, which ended in January 2023, Nvidia reported company-wide revenue of $27 billion. On Wednesday, Nvidia said revenue in the current quarter — the first quarter of its fiscal year 2025 — revenue should total $24 billion, plus or minus 2%.
Meaning the amount of money coming in the front door per quarter is now about 90% of what came in for the entire year just one year ago.
The market cap gains and returns longer-term bulls have realized in Nvidia are gaudy, no doubt. But the results underpinning this hype more than hold their own.
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