NVIDIA Q4 Earnings Surprise 2024: Revenue of $39.3 billion, Strong Demand in AI Data Centers
1. Overview
NVIDIA (NVDA) is a semiconductor company holding a unique position in the field of artificial intelligence (AI) and data centers.
In the Q4 2024 earnings announcement, it recorded a 78% revenue growth and an 82% EPS increase compared to the previous year, achieving results significantly exceeding market expectations.
This report will analyze NVIDIA's key performance metrics, performance by business unit, the contribution of the new product 'Blackwell', future outlook, and key risks.
2. Performance Highlights
Q4 revenue was $39.3 billion, representing a 78% increase from the previous year, exceeding the expected $38 billion.
Earnings per share (EPS) was $0.89, an 82% increase year-on-year, surpassing the forecast of $0.84.
Total revenue for the fiscal year 2024 reached $130.5 billion, marking a 114% growth and the highest performance in history.
3. Segment Performance Analysis
In the data center segment, revenue reached $35.6 billion, a 93% improvement year-on-year, driven by an expansion in cloud services and AI infrastructure investments. In particular, high-performance GPUs and AI acceleration solutions emerged as the key drivers of revenue growth.
In contrast, the gaming and other segments recorded revenue of $2.5 billion, falling short of expectations. The automotive segment showed modest growth with $570 million, and the professional visualization segment reached $500 million.
4. New Product ‘Blackwell’ and Its Impact on the AI Market
Regarding the introduction and high demand for the Blackwell chips, CEO Jensen Huang noted, “Demand for Blackwell has exceeded expectations.” Initial revenue is estimated at $11 billion, with potential supply shortages also being raised.
Moreover, plans for expanding production and future roadmaps are underway. There are plans to expand AI infrastructure alongside Hopper products, and efforts are being made to improve the supply chain in collaboration with manufacturing partners.
5. Future Outlook and Investment Points
Revenue outlook for Q1 2025 stands at $43 billion, expecting over 65% growth year-on-year. Additionally, ongoing upgrades to AI chips are planned, leading to increased expectations for future technological advancements.
In the medium to long term, the proliferation of AI infrastructure stands out. NVIDIA's GPUs are being evaluated as the 'new oil', with continuous growth anticipated in the market. It maintains over 90% market share in AI and data center markets, with analysts recommending strong buy based on long-term growth potential and high profitability.
6. Risk Factors
There are supply chain and production risks. Initial issues during the expanded production of Blackwell chips may be a concern.
Intensifying competition is accelerating. Chinese and global companies are ramping up efforts in AI chip development.
Stock price volatility should also be noted. There is a potential for short-term fluctuations following the earnings announcement.
7. Conclusion and Investment Opinion
NVIDIA has once again confirmed its strong growth in the AI and data center markets through its recent earnings announcement.
In particular, the successful launch of the new product Blackwell and the rapid growth of the data center segment present a positive growth outlook for the future. However, considering the risks that may arise during the expansion of production and the intensifying competition, investors should be cautious about risk management from a long-term perspective.
Overall, NVIDIA is regarded as a key player leading AI innovation, and remains a stock recommended for purchase.
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