Nvidia's First Quarter Results Confirm That The Next Industrial Revolution Is Well Underway

On Wednesday, Nvidia Corporation NVDA reported its fiscal first quarter results, surpassing both top and bottom-line estimates as demand for AI chips remains as robust as ever. Nvidia sales continue to skyrocket as Google, Microsoft Corporation MSFT, Meta Platforms META, Amazon.com Inc AMZN and Microsoft-backed OpenAI spend billions of dollars to buy its graphics processing units to develop and deploy generative AI applications. During extended trading on Wednesday, Nvidia shares rose 7% and surpassed $1,000 for the first time.

Impressive Fiscal First Quarter Highlights

For the quarter ended on April 28th, Nvidia reported that revenue grew 262% YoY as it amounted to $26.04 billion, surpassing LSEG’s estimate of $24.65 billion. Data center alone reported a revenue rise of 427% YoY to $22.6 billion, with large cloud providers like Google, Microsoft and Amazon contributing about mid-40%. Meta Platforms and its announcement of Lama 3, their latest large language model which used 24,000 H100 GPUs, was the highlight of Nvidia’s reported quarter.

Networking revenue grew more than three times compared to last year’s comparable quarter to $3.2 billion, owed primarily to InfiniBand products. Gaming revenue grew 18% to $2.65 billion.Although a much smaller business, Nvidia also makes chips for cars and advanced graphics workstations. Professional visualization brought in $427 million with $329 million in automotive sales.

Net income amounted to $14.88 billion, or $5.98 per share, skyrocketing from last year’s comparable quarter when it amounted to $2 billion.

An Even More Impressive Outlook

For the current quarter, Nvidia guided for sales of $28 billion. Later this year, Nvidia expects even more revenue growth from its next-generation AI chip, with Blackwell expected to unlock a new growth phase for the AI chip leader. Financial Times reported earlier this week Amazon is eagerly waiting for Nvidia's newest superchip.

Nvidia expected a blockbuster quarter and it was just as impressive as anticipated. Although Amazon, Google, Meta and Microsoft have all stated that they intend to be less reliant on Nvidia’s chips as they plan to spend $200 billion this year on chips and data centers they need to train and operate their AI systems, they are not there year. Nvidia’s results have become the most important event on the macroeconomic calendar. It’s no exaggeration to say that its quarterly reports have become an indicator of strength of the AI boom that is not showing any signs of slowing down as AI seems to be the new commodity, marking a new era and the next industrial revolution. The new AI era began with Nvidia and by the looks of it, it is just getting started as CEO Jensen Huang assured that demand for both Hopper and Blackwell is way ahead of supply.

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