The corporate reporting period has is going.
Last week, 15 companies from the S&P 500 index reported.
Today, let’s take a look at Nvidia’s results, which amounted to $35.0B. It grew by +17.6% compared to the corresponding value for the previous quarter and exceeded analysts’ expectations by +5.8%. 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. One of the most productive processors, Nvidia RTX, has already sold more than 100 million units.
The company’s revenue increased by +93% year-on-year. In the reporting quarter, the company launched a new product. Fugatto is a fundamental model for generating and processing any sound. The world leaders in this field are ElevenLabs, StabilityAI, and Meta startups, but Nvidia’s Fugatto functionality is broader than any competitor’s model. The model works with voices (it can, for example, add an accent), music, and just sounds from the outside world.
Manufacturing costs account for 25% of the revenue structure, and gross revenue for 75%. Over the past quarter, the company earned a profit of $19.3B. And its market capitalization is $3.47T.
After the publication of the report, Nvidia shares dropped -1.4% to $141 per share. Market participants are dissatisfied with the company’s strong financial results and reacted negatively.
*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
