Nvidia Revenue Soars 62% to $57 Billion, Major Beneficiary of AI Infrastructure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Significant Revenue Growth: Nvidia's revenue surged 62% last quarter to $57 billion, marking a nearly tenfold increase from $5.9 billion in Q3 2023, demonstrating the company's strong performance in the AI infrastructure sector and solidifying its market leadership.
- AI Infrastructure Investment: As companies and countries ramp up investments in AI, Nvidia, as a primary GPU supplier, benefits from substantial spending by cloud computing firms on AI data centers, with demand expected to continue growing and driving long-term growth potential for the company.
- Rapid Growth in Networking: Nvidia's networking portfolio has become the fastest-growing segment of its business, with revenue soaring 162% to $8.2 billion last quarter, indicating that the company is not just a GPU maker but also providing comprehensive AI solutions, enhancing its competitive edge.
- Long-Term Growth Outlook: Despite increasing competition, Nvidia maintains its lead in a rapidly changing tech landscape due to its advantages from the CUDA software platform and NVLink interconnect system, with expectations that its stock will benefit from the ongoing development of AI technologies.
Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 184.840
Low
200.00
Averages
264.97
High
352.00
Current: 184.840
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
