NVIDIA's Q1 results break records, driving growth for related companies like Taiwan Semiconductor and Dell

From Nasdaq: 2024-05-27 07:30:00

NVIDIA reported record-breaking first-quarter fiscal 2025 results, with revenues of $26.04 billion, up 262% year over year. Data center revenues soared 427% to $22.6 billion, while gaming revenues rose 18% to $2.65 billion. The company’s strong performance was driven by high shipments of Hopper graphics processors.

NVIDIA expects sales of $28 billion in the fiscal second quarter, above the consensus estimate of $26.6 billion. The AI market is gaining momentum, benefiting companies closely associated with NVIDIA like Taiwan Semiconductor, Super Micro Computer, Dell, Meta Platforms, and Micron Technology. These stocks are expected to see strong growth in 2024.

Taiwan Semiconductor, a key manufacturer of NVIDIA’s chipsets, has an expected revenue and earnings growth rate of 22% and 18.3% for the current year. Super Micro Computer, which makes servers using NVIDIA processors, has an expected revenue and earnings growth rate of 60.1% and 44.6% for next year.

Dell, in partnership with NVIDIA, introduced the new PowerEdge XE9680L server with eight NVIDIA GPUs for fast processing. Dell has an expected revenue and earnings growth rate of 7.7% and 9% for the current year. Meta Platforms will receive NVIDIA’s new AI chip for its services like Instagram and Facebook, with an expected revenue and earnings growth rate of 17.8% and 35.7%.

Micron Technology, a producer of memory chips for NVIDIA’s GPUs, anticipates demand growth due to AI applications and 5G adoption. Micron has an expected revenue and earnings growth rate of 58.4% and more than 100% for the current year. These five technology stocks are poised for success in the AI-driven market.



Read more at Nasdaq: 5 Stocks Likely to Gain on NVIDIA’s Blockbuster Q1 Results