Despite the strong performance, the company’s shares declined in pre-opening trading, after it was expected…NVIDIA“It is the world’s largest company by market capitalization and the slowest revenue growth in seven quarters.
The company announced in a statement that its net profit amounted to $19.3 billion, achieving a more than doubled increase on an annual basis (+109 percent), while it was much higher than the $17.4 billion that analysts had expected, according to forecasts compiled by FactSet.
These results were expected on Wall Street, because the American group is considered the standard bearer of the generative artificial intelligence revolution.
Nvidia is actually the largest producer of GPU chips (graphics processing units) necessary for the development of generative artificial intelligence.
The company’s CEO, Jensen Huang, commented on the results by saying in a statement, “The era of artificial intelligence is thriving and driving a global movement towards NVIDIA products.”
He continued, “The demand for Hopper is amazing, and everyone is waiting for Blackwell, which is being produced very quickly,” adding, “Artificial intelligence is working to transform various industries, societies, and countries.”
“Hopper” is a family of microprocessors that includes the “H100”, the company’s main product, the most in demand in this sector, and each piece of which is worth tens of thousands of dollars.
In mid-March, NVIDIA unveiled the Blackwell chip, a family of graphics processing units (GPUs) that succeeds the H100 and which the company describes as “the most powerful chip in the world.”
“Blackwell’s deliveries should begin during this quarter (ending at the end of January) and accelerate” in the next fiscal year, said the company’s chief financial officer, Colette Cress.
“We expect demand for Blackwell to exceed supply over several quarters” next year, she added.
“dominant position”
“These results reinforce the idea that NVIDIA is a once-in-a-generation company that is shaping the next industrial revolution,” said Derren Nathan of Hargreaves Lansdowne.
Revenue for the deferred quarter, which completed at the end of October, was $35.1 billion, up 94 percent year-over-year.
As for the last quarter of its fiscal year, the company is counting on revenues that increased by 70 percent.
Despite this pace of progress, the company’s statement was met with reservations.
Nvidia shares lost about 2.7 percent in electronic trading before the markets opened on Thursday.
Among the limited negatives is that the company expects a slight decline in the gross profit margin for the current quarter compared to the previous quarter, in a range between 73 percent and 73.5 percent.
This margin was already eroded in the second quarter due to the use of more expensive systems in data centers, which are used to develop generative AI software.
NVIDIA is looking to develop, especially in the field of automotive and professional visualization, knowing that data centers still represent about 88 percent of its revenues.
Analyst Jacob Bourne said, “Nvidia continues to assert its dominant position in the market for chips used to develop artificial intelligence (…) but concerns still remain about the pace of Blackwell production.”
Major players in the field of generative artificial intelligence, such as Microsoft, Google, Amazon, Meta, and OpenAI, use hundreds of thousands of GPU chips, and thus constitute a large part of the demand for Nvidia’s product. “.
