The titan of artificial intelligence Nvidia took the center of the stage on Wednesday afternoon when the company shared the financial results of its quarter that ended last month, and although it was another record of record sales in the middle of the AI boom, Nvidia reported an unusually weak final growth as Washington’s regulations on the company’s deals with China entered China.
Key data
Nvidia shares rose 3% to $ 138 after the best -expected quarterly results.
Nvidia reported 44.1 billion in revenues for the three -month period that ended on April 27, exceeding the 43.3 billion Wall Street forecasts in revenues, according to consensus estimates of analysts compiled by FACTSET.
This is equivalent to an interannual growth of the income of a 69%solid, breaking the sales record of 39.3 billion established the previous quarter.
Nvidia also exceeded the growth expectations of its final results, although by a more modest margin, since it obtained diluted gains adjusted by 0.83 action and a net income of 19.9 billion, compared to the respective diluted earnings projections of 0.73 and a net income of 18.3 billion, which is equivalent to an annual increase of 33%.
That is very far from the expansion of year -on -year profits of more than 70% that Nvidia reported in each of the previous seven quarters.
What is the decrease in growth then while the global impulse of the generative AI remains in full boom? It is largely due to the expenditure of 4.5 billion dollars that the company assumed this quarter after the Trump administration limited its ability to export its chips of the H₂O to China, which has a 50,000 million dollars market for the Nvidia chips, according to Rosenblatt analysts.
A telephone conference with its executive director, Jensen Huang, will be broadcast live on the company’s website here at 5 PM EDT.
Large number
8 billion dollars. That is the amount of income that NVIDIA expects to lose during the summer quarter due to the new H2O export controls, the company reported Wednesday.
Surprising data
The Gross Margin of 61% that Nvidia obtained the last quarter was its weakest gross margin since 2022. Bank of America expects the margins to recover almost 75% by the end of the year.
Key history
Nvidia is the undisputed leader of the market in the design of the semiconductor technology necessary to train and enhance generative AI applications, from OpenAI chatgpt to the complete autonomous driving of Tesla. The omnipresence of NVIDIA Graphic Processing Units (GPU) in the AI Gold Fever – with an impressive 75% quota in this flourishing AI accelerator market – has made it one of the most valuable companies in the world. Its stock capitalization of 3.3 billion dollars is only surpassed by Microsoft’s, with 3.4 billion dollars. Since the launch of Chatgpt in November 2022 unleashed an increase in interest in AI ability to boost corporate growth, Nvidia’s actions have experienced a boom. Silicon Valley’s firm’s actions have risen 700% during that period, surpassing the S&P reference index by a magnitude of 14.
Tangent
Nvidia, who is worth more than Berkshire Hathaway, Walmart, JPMorgan Chase and Coca-Cola together, has quite humble origins: its foundation dates back to a meeting in 1993 between Huang and its two co-founders in a Denny’s restaurant.
Forbes assessment
Huang, the only CEO of the company, has traveled a long way from his first job as a waiter assistant in Denny’s, since he is the eleventh richest person in the world thanks to his fortune of 119 billion dollars, according to the last calculations of Forbes.
Nvidia’s actions fell before the results
Nvidia shares retreated 0.5%, up to $ 134.81, during Wednesday’s session. The main indexes fell slightly before the results of Nvidia, an event that usually promotes broader movements. According to Fabio Bassi, director of Global Cross Assets of JPMorgan, it is necessary that NVIDIA present a “positive surprise” so that the market is “accelerated”. The results of Nvidia occur at a time when the stock market in general is recovered strongly after the fall driven by the tariffs of this spring, while the S&P 500 has risen 6% in May, heading towards its best monthly gain since 2023.
This article was originally published by Forbes Us.
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