"Revenue hit $68.13 billion, which was well ahead of expectations of $66.21 billion. EPS of $1.62 beat by eight cents. It also saw record quarterly data center revenue of $62.3 billion, up 75% year over year. Nvidia even declared a one-cent per share dividend, which is payable on April 1 to shareholders of record as of March 11."
"Morgan Stanley analyst Joseph Moore... was 'surprised' by the muted reaction to the stock, given that the results were the 'largest, cleanest beat and raise in the history of the semis industry.'"
"One of the reasons we're not seeing a greater response is that markets are still concerned about high levels of AI capex spending, which, according to JPMorgan, is based on broken logic. On one side of the argument, there's fear that AI will disrupt the entire software industry. Second, there are concerns that hyperscalers are spending too much on AI capex, and that such big investments won't pay off moving forward."
Nvidia reported better-than-expected quarterly results with revenue of $68.13 billion exceeding expectations of $66.21 billion, and EPS of $1.62 beating estimates by eight cents. The company achieved record quarterly data center revenue of $62.3 billion, representing 75% year-over-year growth, and declared a one-cent per share dividend. Forward guidance of $78 billion in revenue, plus or minus 2%, significantly exceeded analyst estimates of $72.8 billion. Despite these exceptional results described as the largest and cleanest beat in semiconductor industry history, market reaction was surprisingly subdued. Concerns about unsustainable AI capital expenditure spending by hyperscalers are weighing on the stock, with investors questioning whether massive AI investments will generate adequate returns.
#nvidia-earnings #ai-capital-expenditure #stock-market-performance #semiconductor-industry #market-sentiment
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]