August M
Nvidia delivered another quarter of blockbuster growth, beating Wall Street expectations and forecasting stronger-than-anticipated revenue for the months ahead.
Yet the chipmaker’s shares were largely unchanged in after-hours trading, as investors signalled they wanted more than just another earnings beat. The results, released on Wednesday, underscore Nvidia’s central role in the artificial intelligence boom while also highlighting rising expectations on Wall Street, reports Reuters.
Beat and forecast
For the January quarter, Nvidia reported revenue of $68.13 billion, a 94% increase from a year earlier and above analysts’ estimates of $66.21 billion, according to LSEG data. Adjusted earnings came in at $1.62 per share, topping expectations of $1.53.
Looking ahead, the world’s most valuable listed company projected fiscal first-quarter revenue of about $78 billion, plus or minus 2%, exceeding analysts’ average forecast of $72.60 billion.
The company said the outlook reflects continued heavy spending by major technology firms on AI processors and data centre infrastructure.
“It’s clear from Nvidia’s latest numbers and their forecast that concerns about an AI slowdown simply are not showing up yet,” said Bob O’Donnell, chief analyst at TECHnalysis Research.
Cash questions
Despite the strong figures, Nvidia’s stock was flat in extended trading. The muted reaction follows 14 consecutive quarters of revenue beats, raising the bar for further upside surprises.
On the earnings call, UBS analyst Tim Arcuri asked whether the company planned to return more of the roughly $100 billion in cash it is expected to generate this year, noting that “no matter how good the results have been, the stock hasn’t really gone up much.”
Chief Financial Officer Colette Kress said Nvidia intends to prioritise reinvestment in the AI ecosystem. Chief Executive Jensen Huang added: “This new way of doing computing is not going to go back,” emphasising the company’s focus on expanding infrastructure to support AI-driven workloads.
Competitive pressures
Investors are also watching for risks to Nvidia’s dominance in AI chips. Advanced Micro Devices is preparing a new AI server product and has secured deals with major customers, including Meta Platforms. Alphabet’s Google is promoting its in-house AI chips and has struck agreements with AI developer Anthropic, while reportedly discussing supply arrangements with Meta.
At the same time, Nvidia’s customer concentration has edged higher. Two clients accounted for 36% of revenue in the most recent fiscal year, compared with three customers representing 34% previously.
The company said it has secured sufficient supply from manufacturing partner TSMC to meet demand in coming quarters, though shortages will weigh on its gaming segment.
China and compensation
Nvidia’s latest forecast excludes revenue from data-centre chip sales to China, though it said it recently received U.S. licences to ship “small amounts” of H200 chips there. Export controls have restricted such sales.
The company also announced it would begin including stock-based compensation in its non-GAAP financial metrics, calling it “a foundational component” of efforts to attract and retain AI talent.
While Nvidia continues to post exceptional growth, investors appear increasingly focused on capital returns and competitive dynamics as the AI race intensifies.
Sources: Reuters, LSEG
