22 February 2024
If you are covering Nvidia’s latest results, please see the following comment from Ben Barringer, technology analyst at Quilter Cheviot:
"Nvidia unveiled impressive financial results last night , marking another very robust performance by the tech giant. The company is leading a significant shift from traditional computing towards AI computing, a move underscored by the rapid expansion of data centers and the increased use of GPUs, rising from 10% to 50% of processors.
"Financially, Nvidia's revenue surged by 265%, driven largely by the introduction of new products. This remarkable growth comes despite the downturn in Chinese sales given US restrictions. Despite China being down 75% the company managed to post extraordinary results.
"Profitability has seen a remarkable increase, with profits and cash assets both expanding sixfold. A notable highlight is the data center GPU business illustrating the booming demand in this sector.
"The demand dynamics are particularly interesting, with significant interest not only from cloud service providers but also from consumer internet companies like Meta, software companies like Adobe, and sectors such as automotive and governments. This diverse demand, however, is met with supply constraints, although there are signs that supply issues are beginning to ease in certain areas.
"Looking ahead, Nvidia has provided guidance that exceeds consensus expectations by 9%, indicating a robust outlook of 233% yoy. The company's strong market positioning, combined with a burgeoning market, suggests that Nvidia is set to continue its growth trajectory well beyond 2024. The demand-supply dynamics, especially in the Asian supply chain, will be crucial to watch, as they will play a significant role in shaping Nvidia's future growth."
