Nvidia reports record-breaking earnings and revenue, announces stock split and dividend increase
From Yahoo Finance: 2024-06-03 10:00:04
Nvidia Corp. (NASDAQ:NVDA) reported record-breaking earnings and revenue for Q1, exceeding expectations with a 262% year-over-year revenue increase to $26.04 billion. The company’s data center segment brought in $22.60 billion, with strong growth driven by new AI products like the H200. Nvidia also announced a stock split and increased dividend, indicating positive outlook for future growth.
In fiscal 2024, Nvidia achieved $60.90 billion in revenue, a 126% year-over-year growth, highlighting its dominant position in the accelerated computing and generative AI markets. With earnings per share soaring 586% to $11.93, and FCF increasing by 269.10%, Nvidia’s robust financials position it for sustained high growth and shareholder value.
Nvidia’s current market dominance is evident with its significant growth outpacing competitors AMD and Intel. The company’s upcoming Blackwell products are anticipated to drive further market expansion, potentially leading to annual data center revenue exceeding $100 billion. Chinese exposure risks are minimal with revenue now in the mid-single digits, making Nvidia’s growth even more impressive.
From a valuation perspective, Nvidia may not appeal to value investors, but its consistent performance and revenue increases justify its current price levels. A target price of $1,377 per share reflects the company’s leadership in the GPU market and strong growth prospects. Nvidia’s innovative strides in AI and accelerated computing position it well for sustained growth and value creation for shareholders.
Read more at Yahoo Finance: Nvidia Is Still a Strong Buy