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NVIDIA: A Meteoric Rise as Q4 Earnings and Revenue Skyrocket

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NVIDIA Corporation NVDA shares surged 9% after the bell on Wednesday, riding high on the coattails of the company’s stupendous fourth-quarter fiscal 2024 results and bullish guidance for the first quarter of fiscal 2025.

For the fiscal fourth quarter, NVIDIA churned out non-GAAP earnings of $5.16 per share, a stellar 486% surge year over year and a 28% sequential rise, trouncing the Zacks Consensus Estimate by 13.4%. The impetus for this robust leap in earnings was driven by surging revenues and an uptick in gross margin.

A Historic Revenue Surge

Fiscal fourth-quarter revenues more than tripled year over year and climbed 22% sequentially to $22.1 billion, trumping the consensus estimate of $20.31 billion. The turbocharged growth was largely fueled by record sales in the Data Center end market and robust sales to partners across the Gaming and Professional Visualization end markets.

Segmental Splendor

NVIDIA’s revenue is reported through two main segments: Graphics and Compute & Networking. The Graphics segment, including GeForce GPUs for gaming and personal computers, soared 77% year over year to $4.21 billion, while the Compute & Networking segment, which includes Data Center platforms and systems, surged 387% year over year to $17.9 billion.

Market Platform Marvels

In the gaming market, revenues spiked 56% year over year to $2.87 billion, while Data Center revenues skyrocketed 409% year over year to $18.4 billion. Furthermore, Professional Visualization revenues climbed 105% year over year, reaching $416 million.

Operating Momentum

NVIDIA’s non-GAAP gross margin increased to 76.7%, mainly driven by higher Data Center sales and favorable component costs. Non-GAAP operating expenses increased 25% year over year, while non-GAAP operating income jumped 563% year over year to $14.75 billion, propelled by higher revenues, improved gross margin, and lower operating expenses.

Financial Fortitude

As of Jan 28, 2024, NVIDIA’s cash, cash equivalents, and marketable securities totaled $25.98 billion, and its total long-term debt stood at $8.46 billion. The company reported operating cash flow of $11.5 billion in the quarter, ending fiscal 2024 with a whopping $26.95 billion in operating cash flow.

In the quarter, NVIDIA returned $99 million to shareholders through dividend payouts and repurchased stocks worth $2.8 billion. For fiscal 2024, it returned $395 million in dividends and bought back stocks worth $9.5 billion.

NVIDIA pays dividends? It’s a bit like Tony Stark handing out free arc reactors; it’s an investor perk, and one that isn’t something you see every day.

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