NVIDIA reported a significant revenue surge of 106% year-over-year, totaling $96.2 billion for the latest fiscal year, while adjusted earnings per share soared 120% to $2.22. Data Center revenue, a key growth driver, reached $89 billion, representing a 117% increase compared to the previous year.
Microsoft also posted strong results with sales up 18% YoY, driven by its Intelligent Cloud services, which generated $39.3 billion in revenue—a growth of 32% YoY. Both companies have attractive forward earnings multiples, with NVIDIA at 16.4x and Microsoft at 24.1x, well below their respective five-year medians.
Investors remain optimistic due to the companies’ solid fundamentals amidst ongoing AI adoption, with consensus earnings estimates indicating a 93% growth for NVIDIA and nearly 10% for Microsoft in their current fiscal years.
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