Nvidia just released its Q4 earnings report, and it is better than the expectations of Wall Street. The tech company also made claims that the earnings in the current quarter will likewise surpass expectations as well.
In the case of the Wall Street expectations versus the actual Nvidia revenue, the tech company indeed surpassed the expectations by a long margin looking at the numbers.
According to Wall Street, Nvidia was expected to have $4.64 earnings per share but delivered $5.16. In terms of revenue, Nvidia made $22.10 billion against the $20.62 billion expectations of the financial authority.
In Extended trading, Nvidia shares saw a significant rise of 10% as a by-product of the report revelations and rekindled interest in the company by investors.
Notably, the major source of revenue for the tech giant Nvidia is coming from its expensive graphics processor sales because of the recent AI-driven trend in the world right now.
According to the company CEO Jensen Huang, Nvidia is a benefactor of an excellent condition for substantial growth from 2025, and further in the future. Stating that because of the increase in generative AI tools, there would be an increase in the demand for GPUs, which Nvidia happens to be at the top of the production game right now.
Because of the high volume of sales of AI chips for servers, specifically the H100 “Hopper chips”, the company saw a 265% rise in total revenue from the previous year. While data center sales purchased by large cloud providers went up to 409% to a staggering $18.4 billion.
The Nvidia Setbacks
“We understood what the restrictions are, and reconfigured our products in a way that is not software hackable by any means. That took some time so we reset our product offering to China and we’re now sampling to customers over there.
CEO Jensen Huang in a statement to shareholders.
It was not an easygoing year for Nvidia as United States restrictions clamped down on export sales to China because of some security reasons.
The data center revenue was under constant attack by the restrictions, as the company needed to export advanced AI semiconductors to one of its biggest markets, which is China.
Another negative of the books is the Nvidia automotive business, which proceeded to have a 4% decline in sales, wrapping up $281 million.
Other Side Attractions
Another section of the company making improving profits yearly is the Nvidia gaming business. Known for providing graphics cards for laptops and PCs, this was the company’s flagship before the AI chip phase began and skyrocketed into the scene, although some of its graphics cards are AI-compatible.
According to the report, the graphics card sales went up 56%, making approximately $2.87 billion on a year-over-year analysis.
In terms of professional application graphics hardware, the tech giant made $463 million, stating a rise of 105%. While its crypto chips business made a revenue of $90 million, a 7% rise from the previous year.
