Nvidia (NVDA) reported strong fourth-quarter results for 2024, with revenue reaching $39.3 billion, up 78% year-on-year and surpassing both the company’s guidance and analysts’ expectations. The adjusted profit was $0.89 per share, also exceeding forecasts. A notable highlight was the data center business, which surged 93% year-on-year, contributing 91% to total revenues. However, the company’s growth rate showed signs of slowing compared to previous quarters, and gross profits decreased 73% year-on-year.
Post-announcement, Nvidia’s stock dipped slightly, primarily due to its less-than-exciting guidance for the upcoming quarter, projecting $43 billion in revenue, which is below analyst predictions. The outlook indicated a continuing decline in growth rates and margins.
Despite concerns about slowing growth, the article suggests that investors should not be overly alarmed. Nvidia’s CEO, Jensen Huang, emphasized the vast potential growth in AI computing power, suggesting that future requirements could far exceed current needs. The author believes Nvidia will maintain a leading position in the AI chip market, presenting a good opportunity for growth investors to consider purchasing its stock.
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