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Nvidia guidance tops estimates as AI-led chip demand continues; shares jump

Published 22/02/2024, 08:32 am
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Investing.com -- Nvidia reported Wednesday better-than-expected guidance and fiscal fourth-quarter results as an AI-led surge in demand for chips helped ease the hit from the U.S. chip export ban to China. 

NVIDIA Corporation (NASDAQ:NVDA) rose 6% in afterhours following the report.

For the three months ended Dec. 31, NVIDIA announced earnings per share of $5.16 on revenue of $22.1 billion. Analysts polled by Investing.com anticipated EPS of $4.64 on revenue of $20.55 billion.

Data center, a gauge of AI demand, saw revenue swell to $18.40B, up 409% from a year earlier, beating estimates of $17.06B amid rising demand for its AI GPUs including the H100. 

The gaming business saw revenue jump 56% to $2.87B in Q4 year-on-year, while the automotive sector slipped 4% to $281M.

The beat comes even as data center sales to China "declined significantly" in the fourth quarter due to U.S. government licensing requirements, the company said.

For the fiscal Q1, revenue is expected to be $24B, give or take 2%, topping analyst estimates for $22.01B. Non-GAAP gross margins are expected to be 76.3% and 77.0%, respectively, plus or 50 basis points.

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