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NVIDIA (NVDA) Q4 Earnings to Gain From Datacenter Chip Demand
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NVIDIA Corporation (NVDA - Free Report) is slated to report fourth-quarter fiscal 2024 results on Feb 21.
NVIDIA's performance in the fourth quarter of fiscal 2024 is expected to showcase the ongoing robustness of its Datacenter segment. This segment is likely to have experienced significant growth fueled by the rising demand for generative artificial intelligence (AI) and large language models utilizing GPUs based on NVIDIA Hopper and Ampere architectures.
During the third quarter of fiscal 2024, NVIDIA achieved record revenues in its data center end market, driven primarily by increased investments in generative AI. Revenues from the Datacenter segment surged by 279% year over year and 41% sequentially in the last reported quarter.
It is anticipated that this trend is likely to have persisted in the quarter under review. Projections estimate fourth-quarter revenues for the data center end market to reach $16.4 billion, representing substantial year-over-year growth of 354.2% and a sequential increase of 13%.
The emergence of OpenAI's ChatGPT has brought generative AI into the spotlight, signaling the beginning of a potential AI boom. Generative AI, powered by large language models, can create diverse content types, including text, imagery, audio and synthetic data. This technology is poised to revolutionize various industries by modernizing workflows.
According to Fortune Business Insights, the global generative AI market is projected to reach $667.96 billion by 2030, growing at a CAGR of 47.5% from 2023 to 2030. ChatGPT's adoption by enterprises has demonstrated its utility across sectors such as marketing, customer service, healthcare and more.
However, leveraging generative AI requires substantial computational power and expertise, prompting enterprises to upgrade their infrastructure. NVIDIA's next-generation chips, renowned for their high computing capabilities, are well-suited for this task. CEO Jensen Huang highlighted the inadequacy of existing data centers for handling AI workloads during NVIDIA's first-quarter fiscal 2024 earnings call.
As NVIDIA's GPUs find applications in AI models across industries like automotive, healthcare and manufacturing, the demand for its high-powered chips is expected to surge further. NVIDIA anticipates robust revenue growth in the fourth quarter of fiscal 2024, reaching $20 billion, driven by increased AI investments in the data center end market.
Zacks Rank & Other Stocks to Consider
NVIDIA currently carries a Zacks Rank #2 (Buy). Shares of NVDA have surged 239.5% over the trailing 12 months.
The Zacks Consensus Estimate for CrowdStrike’s fiscal 2024 earnings has been revised a penny upward to $2.95 per share in the past seven days, suggesting year-over-year growth of 91.6%. The long-term estimated earnings growth rate for the stock stands at 36.1%. Shares of CRWD have jumped 188.1% over the past year.
The Zacks Consensus Estimate for Amazon’s 2024 earnings has been revised upward by 39 cents to $4.03 per share in the past 30 days, which calls for an increase of 39% on a year-over-year basis. The long-term expected earnings growth rate for the stock is pegged at 28.1%. AMZN stock has returned 74.3% over the past year.
The consensus mark for Meta’s 2023 earnings has been revised upward by 10.8% to $19.62 per share over the past 30 days, indicating a 31.9% increase from 2024. It has a long-term earnings growth expectation of 19.5%. In the trailing 12 months, META stock has surged 173.7%.
Image: Bigstock
NVIDIA (NVDA) Q4 Earnings to Gain From Datacenter Chip Demand
NVIDIA Corporation (NVDA - Free Report) is slated to report fourth-quarter fiscal 2024 results on Feb 21.
NVIDIA's performance in the fourth quarter of fiscal 2024 is expected to showcase the ongoing robustness of its Datacenter segment. This segment is likely to have experienced significant growth fueled by the rising demand for generative artificial intelligence (AI) and large language models utilizing GPUs based on NVIDIA Hopper and Ampere architectures.
During the third quarter of fiscal 2024, NVIDIA achieved record revenues in its data center end market, driven primarily by increased investments in generative AI. Revenues from the Datacenter segment surged by 279% year over year and 41% sequentially in the last reported quarter.
It is anticipated that this trend is likely to have persisted in the quarter under review. Projections estimate fourth-quarter revenues for the data center end market to reach $16.4 billion, representing substantial year-over-year growth of 354.2% and a sequential increase of 13%.
NVIDIA Corporation Price and EPS Surprise
NVIDIA Corporation price-eps-surprise | NVIDIA Corporation Quote
GenAI Boom to Aid the Top Line
The emergence of OpenAI's ChatGPT has brought generative AI into the spotlight, signaling the beginning of a potential AI boom. Generative AI, powered by large language models, can create diverse content types, including text, imagery, audio and synthetic data. This technology is poised to revolutionize various industries by modernizing workflows.
According to Fortune Business Insights, the global generative AI market is projected to reach $667.96 billion by 2030, growing at a CAGR of 47.5% from 2023 to 2030. ChatGPT's adoption by enterprises has demonstrated its utility across sectors such as marketing, customer service, healthcare and more.
However, leveraging generative AI requires substantial computational power and expertise, prompting enterprises to upgrade their infrastructure. NVIDIA's next-generation chips, renowned for their high computing capabilities, are well-suited for this task. CEO Jensen Huang highlighted the inadequacy of existing data centers for handling AI workloads during NVIDIA's first-quarter fiscal 2024 earnings call.
As NVIDIA's GPUs find applications in AI models across industries like automotive, healthcare and manufacturing, the demand for its high-powered chips is expected to surge further. NVIDIA anticipates robust revenue growth in the fourth quarter of fiscal 2024, reaching $20 billion, driven by increased AI investments in the data center end market.
Zacks Rank & Other Stocks to Consider
NVIDIA currently carries a Zacks Rank #2 (Buy). Shares of NVDA have surged 239.5% over the trailing 12 months.
Some other top-ranked stocks from the broader technology sector are CrowdStrike Holdings (CRWD - Free Report) , Amazon.com (AMZN - Free Report) and Meta Platforms (META - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CrowdStrike’s fiscal 2024 earnings has been revised a penny upward to $2.95 per share in the past seven days, suggesting year-over-year growth of 91.6%. The long-term estimated earnings growth rate for the stock stands at 36.1%. Shares of CRWD have jumped 188.1% over the past year.
The Zacks Consensus Estimate for Amazon’s 2024 earnings has been revised upward by 39 cents to $4.03 per share in the past 30 days, which calls for an increase of 39% on a year-over-year basis. The long-term expected earnings growth rate for the stock is pegged at 28.1%. AMZN stock has returned 74.3% over the past year.
The consensus mark for Meta’s 2023 earnings has been revised upward by 10.8% to $19.62 per share over the past 30 days, indicating a 31.9% increase from 2024. It has a long-term earnings growth expectation of 19.5%. In the trailing 12 months, META stock has surged 173.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.