-85% p.a.
bt_headshoulder_aapl_returnopt
Introduction to our strategy no description yet Quick Summary Metric Value Return % p.a. -85 Days active 427 …
tickers: NVDA
source: Motley Fool
tickers affected by this
| ticker | polarity | why? |
|---|---|---|
| NVDA | positively | The ticker will likely be affected positively due to Nvidia’s impressive Q4 results, which significantly exceeded Wall Street estimates, driven by a surge in data center revenue. Additionally, the strong demand for AI chips and the company’s optimistic outlook for future growth should bolster investor confidence and potentially drive the stock price higher. |
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summary
Nvidia Delivers Strong Q4 Results, But Is the Stock a Buy?
Investors no longer have to speculate about how Nvidia (NASDAQ: NVDA) performed in the fourth quarter of 2024. The GPU maker reported its Q4 results after the market closed on Wednesday, and the news was once again positive. Nvidia handily beat Wall Street estimates, but the stock’s future remains a topic of debate.
Blowout Quarter for Nvidia
Nvidia reported Q4 revenue of $39.33 billion, a 78% year-over-year increase and 12% higher than the previous quarter. This surpassed the company’s guidance of $37.5 billion and the average analyst estimate of $38.05 billion. Adjusted earnings per share came in at $0.89, a 71% year-over-year increase and a 10% jump from the third quarter. The consensus estimate was $0.84 per share. The standout performer was Nvidia’s data center business, which generated $35.6 billion in revenue, a 93% year-over-year increase and 16% sequential growth. This segment made up nearly 91% of the company’s total revenue.
Clouds on the Horizon
Despite the strong results, there were some concerns. Nvidia’s growth rate is slowing compared to previous quarters, and gross margins slipped 3% year over year to 73%. Additionally, the company’s Q1 revenue guidance of $43 billion, plus or minus 2%, fell short of analyst expectations of $43.37 billion.
Future Outlook
Nvidia’s future looks bright, with increasing demand for more powerful AI chips. CEO Jensen Huang noted that the computing power required for AI inference is already 100 times greater than needed for early large language models, and future models could require exponentially more power.
Should You Buy Nvidia Stock?
Despite the slowing growth and lower margins, Nvidia’s future in the AI chip market looks promising. Growth investors may want to consider buying Nvidia stock now, as the company could have many more blowout quarters ahead. However, investors should be prepared for higher expectations given the stock’s valuation.
