Accounting

Nvidia posts record earnings

Expect the AI hype to continue.
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· less than 3 min read

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If you’re tired of hearing about AI, we’ve got bad news for you.

Nvidia’s Q4 and full-year 2023 earnings smashed records, all but ensuring AI hype will continue for the foreseeable future. The chipmaker reported Q4 revenue of $22.1 billion, up 265% from Q4 2022, and a diluted EPS of $4.93, up 33% from last quarter and a whopping 765% from this time last year. (And, no, Lyft, those aren’t typos.)

“Accelerated computing and generative AI have hit the tipping point,” Nvidia’s founder and CEO Jensen Huang crowed in a press release. “Demand is surging worldwide across companies, industries, and nations.”

Nvidia’s made itself inescapable merely by virtue of being so big. Last week, it became the nation’s third-largest company, reaching a market cap of $1.83 trillion. It’s driven about a third of the Nasdaq 100’s gains this past year, according to Fast Company. That being the case, Nvidia’s performance can serve as a litmus test for the stock market itself.

So far, investors are bullish. Nvidia’s stock rose 14% after it reported earnings in what may turn out to be the biggest one-day rally in history. But if things cool off in the coming days, it could be a sign that investors are growing cautious, Paul Marino, chief revenue officer at GraniteShares told Reuters.

If you do want to get your hands on some of that sweet, sweet computing power, you’ll need to be patient. The chip shortage will continue into this year, Huang and CFO Colette Kress told analysts on a call.

Still, Nvidia expects sales of $24 billion this quarter. It’s good to be the king.

News built for finance pros

CFO Brew helps finance pros navigate their roles with insights into risk management, compliance, and strategy through our newsletter, virtual events, and digital guides.