21 November 2024
If you are covering Nvidia’s latest results, please see the following comment from Ben Barringer, technology and media analyst at Quilter Cheviot:
"Nvidia’s latest results underscore its strong position in the market, with revenue surging an impressive 94% year-on-year and an 8% beat on expectations. The company has established a habit of consistently outperforming by $2–3 billion, driven primarily by its data centre business. This growth is underpinned not just by demand from cloud giants, which make up around half of its customer base, but also from a broader mix of clients, including governments like Denmark, India, and Indonesia, as well as enterprises. Notably, consultancy firms such as Accenture and Deloitte are now customers, signalling a broadening of its reach—a positive sign for long-term demand.
"The company highlighted its next-generation Blackwell architecture, which is set to ramp production next year. Promising 2.5 times better performance than its predecessor, Hopper, Blackwell reflects Nvidia’s core strategy: relentless innovation, delivering products with improved performance per watt, combining powerful processing capabilities with energy efficiency.
"China remains an area of growth despite being limited by export restrictions, while Nvidia’s guidance for the next quarter—$37.5 billion in revenue—came in better than sell-side estimates but fell short of buy-side hopes. This, along with a lower gross margin due to new product ramp-ups (a standard issue in the industry), led to a modest 2% dip in the stock. However, this does little to change the long-term thesis for Nvidia. Its ability to innovate year after year and broaden its customer base ensures it remains a leader in a rapidly expanding and increasingly diverse market."
