Proactive Investors - NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) shares rallied 9% in aftermarket trading after its fourth-quarter earnings once again outperformed analysts' expectations.
Other chip makers also experienced a lift from the results, including British manufacturer Arm Holdings PLC (NASDAQ:ARM), which lifted around 8% after close, and Advanced Micro Devices (NASDAQ:AMD) Inc (NASDAQ:AMD, ETR:AMD), which rose 4%.
The AI chipmaker brought in $22.1 billion in revenue during the period compared to Wall Street analyst expectations of $20.3 billion.
This represented a 265% year-over-year increase and was a quarterly revenue record.
"While budget may be being trimmed elsewhere, companies are ringfencing money to beef up their future AI capabilities, with the fear of missing out on this revolutionary technology front and centre,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown (LON:HRGV).
Data Center revenue was a new record $18.4 billion, up 409% year-over-year.
Adjusted earnings per share rose 486% over the year-ago quarter at $5.16, above estimates of $4.55.
For the full year, revenue rose 126% to $60.9 billion while adjusted EPS rose 288% to $12.96. Both figures were ahead of estimates of $59.1 billion and $12.36, respectively.
“Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations,” Nvidia CEO Jensen Huang said in a statement.
“Our Data Center platform is powered by increasingly diverse drivers — demand for data processing, training and inference from large cloud-service providers and GPU-specialized ones, as well as from enterprise software and consumer internet companies. Vertical industries — led by auto, financial services and healthcare — are now at a multibillion-dollar level.”
Looking ahead to the first quarter of fiscal 2025, the company guided revenue of $24 billion plus or minus 2%, above estimates of $21.5 billion.
Nvidia shares gained 6.5% at about $718 shortly following the release of its earnings report.