[Financial Summary] NVIDIA surged close to 13% at one point “Worldwide demand surges rapidly” = CEO Mr. Huang

NVIDIA's sales for the full year 2024 increased 126% to 60.9 billion dollars. Also, according to our performance guidance, FY25Q1 sales are expected to be 24 billion dollars (± 2%), which greatly exceeds the market consensus of 21.9 billion dollars.

Generative AI is at a turning point = CEO Jenson Huang
Jensen Huang, founder and CEO of NVIDIA, said, “Generative AI has reached a turning point. Regardless of company, industry, or country, demand is rapidly increasing around the world,” he said, “We are also expanding into new industries, and multi-billion dollar industries such as automobiles, health, robotics, and financial services are accepting our generative AI.”

“Launched 6 years ago, NVIDIA RTX is now a huge PC platform for 100 million gamers and AI developers. The next year will see not only an important new product cycle from our company, but also great innovations that will advance the industry,” Huang said.

Data centers are the mainstay of sales
By segmentThen, the data center business division, which provides A100/H100 chips, continues to drive sales. Sales in the same division were 18.4 billion dollars, up 409% from the same period last year,83% of total salesIt occupied.

In contrast, AMD's data center sales for the same period were 2.282 billion dollars, and Intel's was 3.985 billion dollars. NVIDIA's data center sales were about 8 times that of AMD and 5 times that of Intel.

Meanwhile, there is a possibility that the AI chip market will undergo major changes as competitor companies such as AMD and Intel launch new chips. NVIDIA in the AI fieldThe advantage fluctuates and the gross margin ratio declinesAlso conceivable.

Demand for new products far exceeds expectations = CFO
NVIDIA's Chief Financial Officer Colette Kress (CFO) talks about the company's new products at a financial results briefingMarket demand is expected to significantly exceed supply levels. Mr. Kress also predicts that the B100 chip, which is the company's new product, is scheduled to be shipped later this year, and that the scale of data center infrastructure will double within 5 years.

Analysts have raised target stock prices one after another
Goldman Sachs's target stock price for NVIDIA$875It was raised to, and it is expected that strong next-generation AI infrastructure investment and new products will continue to underpin outperformance.

City “bought” NVIDIA ratings and targeted stock prices$875It was raised to and pointed out that the increase in shipments of Hopper image processors will be a driving force for quarterly sales and profit margins exceeding expectations.

Key points of settlement
●Non-GAAP EPS was 5.16 dollars, surging 486% from the same period last year, and exceeding market expectations of $4.60.
●Sales were 22.1 billion dollars, surging 265% from the same period last year, and exceeding market expectations of 20.412 billion dollars.
●Sales for data centers were 18.4 billion dollars, up 409% from the same period last year, exceeding market expectations of 17.2 billion dollars, and recorded a record high.
●Sales for games were 2,865 billion dollars, up 56% from the same period last year.
●Professional visualization sales were $463 million, up 105% year over year.
●Automotive (automobile) sales were 281 million dollars, down 4% from the same period last year.

Forecast for FY25Q1 (fiscal year ending February to April)
●FY25Q1 sales were 24 billion dollars (± 2%), which greatly exceeded market expectations of 21.9 billion dollars.
●The gross profit margins for GAAP and non-GAAP are 76.3% and 77.0% (± 50 bp), respectively.
●GAAP and non-GAAP operating expenses are approximately 3.5 billion dollars and 2.5 billion dollars, respectively.