The Bottom Line:
- NVIDIA’s earnings surpassed expectations with a significant 262% increase in sales, signaling a continuing AI boom.
- The stock price surged by 25%, reaching $972 after hours, contributing to a market cap of over $2.35 trillion.
- A 10-for-1 stock split is set for June 7th, 2024, making shares more accessible to investors.
- Record quarterly data center revenue of $22.6 billion, up 23% from Q4 and 127% year over year.
- Substantial growth in several sectors including a 177% rise in automotive revenue from the previous quarter.
NVIDIA’s Historic Earnings: Unprecedented 262% Sales Boost
Key Financial Highlights
Q1 non-gaap EPS $6.12 beat by 54, Revenue at $26.4 billion – a remarkable 262.50 Billion record quarterly data center Revenue at $22.6 billion, up 23% from Q4 and a staggering 127% jump from a year ago.
Stock Split News
NVIDIA announces a 10-for-1 stock split effective June 7th, 2024. This move aims to increase liquidity and accessibility for retail investors, allowing for easier options trading due to the lower share price post-split.
Business Segment Performance
– Gaming revenue for the first quarter totaled $2.6 billion, down 8% from the previous quarter but up 18% from the same period last year.
– Professional visualization revenue came in at $427 million, also showing an 8% decline from the previous quarter but a 45% increase year-over-year.
– Automotive revenue reached $329 million in the first quarter, marking a significant 177% growth from the prior quarter and an 11% rise from a year ago.
Stock Price Skyrockets: NVDA Hits $972 After Hours
Stock Price Surge: NVDA Hits $972 After Hours
The stock price of NVDA soared after-hours to $972, showcasing a substantial 25% increase following the release of their earnings report. Market cap has surpassed $2.35 trillion, with a PE ratio of 79 that’s trending down due to consistently stellar earnings. A stock split of 10-for-1 is set for June 7th, 2024, aimed at enhancing liquidity and retail investor accessibility, particularly in options trading.
Financial Performance Overview
In the first quarter, NVDA reported a non-GAAP EPS of $6.12, surpassing expectations by 54%. Revenue reached an impressive $26.4 billion, marking a phenomenal 262% increase in sales. The data center revenue hit a record $22.6 billion, up by 23% from the previous quarter and a remarkable 127% surge from the same period last year.
Business Segment Analysis
Gaming revenue for Q1 amounted to $2.6 billion, showing an 8% decrease from the earlier quarter but an 18% rise from the prior year. Professional visualization revenue stood at $427 million, down by 8% sequentially but up by 45% year-over-year. Automotive revenue in the first quarter hit $329 million, reflecting a significant 177% growth from the last quarter and an 11% increase from a year ago.
Upcoming 10-for-1 Stock Split: What It Means for Investors
Analysis of Upcoming 10-for-1 Stock Split
NVIDIA’s announcement of a 10-for-1 stock split effective June 7th, 2024, is anticipated to augment liquidity and accessibility for retail investors. This move is expected to facilitate easier options trading with a reduced share price post-split.
Implications on Investor Strategies
The stock split signifies a significant development that could impact investor strategies, particularly those involved in derivatives trading. With the lower post-split share price, investors may find it more convenient to engage in options trading and potentially capitalize on market movements efficiently.
Psychological Impact on Market Behavior
Stock splits often have a psychological impact on market behavior, especially among retail investors. While the split does not alter ownership stakes, the perception of having more shares after the split can influence investor sentiment and potentially drive the stock price higher. The increased affordability post-split may also attract new investors to the stock, further influencing its market performance.
Data Center Dominance: Quarterly Revenue Reaches $22.6 Billion
Data Center Dominance: Quarterly Revenue Reaches $22.6 Billion
NVIDIA delivered exceptional results in its data center segment, with a record-breaking quarterly revenue of $22.6 billion. This figure represents a remarkable 23% increase from the previous quarter and an outstanding surge of 127% compared to the same period last year. The data center division’s performance underscores NVIDIA’s dominance in this critical market segment and highlights the company’s continued success and growth trajectory.
Sector Growth Spotlight: Automotive Revenue Soars 177%
Automotive Sector Growth Highlight: Revenue Surges 177%
In the first quarter, NVIDIA’s automotive revenue witnessed a significant increase, reaching $329 million. This marks a substantial growth of 177% from the previous quarter and an 11% rise compared to the same period last year. The surge in revenue reflects a positive outlook for the automotive sector within NVIDIA, showcasing potential for further advancements and partnerships in this area.
