NVIDIA’s Back – Shares Surge By 27% As CEO Boasts Of Trillion Dollar Opportunity

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Chipmaker NVIDIA Corporation reported its earnings for the first quarter of the fiscal year 2024 earlier today. Compared to the bloodbath that NVIDIA's Q4 2023 was, the previous quarter was relatively stable, and crucially, it marked a sequential growth for all of the firm's primary business divisions. The quarter was a massive success for NVIDIA, whose revenue during the three-month period stood at $7.1 billion, and earnings per share came out at $1.08 - with the latter being a massive beat over the consensus estimates of $0.92. Riding the ongoing artificial intelligence wave, NVIDIA's chief executive officer Mr. Jen-Hsun Huang was eager to mention a trillion-dollar opportunity from data centers shifting to artificial intelligence platforms.

As usual, the show's star was NVIDIA's data center segment. NVIDIA and AMD have both seen their income statements shift from relying on gaming and consumer products for growth to data centers, especially over last year when high inflation had a stronger impact on consumer spending. This has seen their data center segments become the largest business segment, and Q1 2024 was no exception for NVIDIA.

The data center segment was NVIDIA's only business division that marked a robust annual growth and the only one with over a billion dollars in revenue to do so. It earned NVIDIA $4.2 billion in revenue from it in the quarter, for an approximately 14% annual growth over the year ago quarter's $3.7 billion in revenue. The annual growth in revenue for data center also broadly outpaced NVIDIA's annual revenue drop of 13%. This growth was driven by various