Earnings Updates | Q4 2023

February 28, 2024by toleg.work

Last week, 54 companies from the S&P 500 index reported for Q4 2023 and 1 for Q1 2024.

One of the best results was demonstrated by Nvidia, which reported $22.1B in revenue. It grew by +35.8% compared to the corresponding value for the previous quarter and exceeded analysts’ expectations by 9.2%. Let’s analyze the company’s business in more detail.

Nvidia is a leader in the market of graphics processors used for computer games, training artificial intelligence models, cryptocurrency mining, etc.

The company’s revenue increased by 3.6 times and net income by 8.7 times compared to the same quarter last year. This was driven by the growing demand for AI products worldwide. For example, one of the most productive processors Nvidia RTX has already sold more than 100M units. The company also announced a new business vector – the production of chips for individual needs of corporate clients in the field of AI.

24% of the revenue structure is made up of manufacturing costs, and 76% is gross revenue. The company made a profit of $12.2B in the last quarter. Its market capitalization is $1.96T.

After the publication of the report, Nvidia stock rose by +16.2% to reach $784 per share. Market participants are pleased with the company’s strong financial results and responded positively to the company’s development prospects.

*surprise – % ratio between actual and expected revenue
**growth – % ratio of the amount of revenue for the last 4 quarters compared to this value calculated for the previous quarter

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