Nvidia Cracks $200B Revenue Barrier, Guides 70% Growth Next Year
Nvidia has made waves in the tech world by providing its first-ever revenue guidance for the next fiscal year, predicting a whopping 70% growth. This announcement came on the heels of its quarterly results, which exceeded expectations and showed no decline in stock price post-earnings, unlike the previous four quarters.
CFO Colette Kress noted that this impressive growth could have been even higher if it weren't for supply chain constraints, particularly rising memory prices and component shortages. The company's dependence on hyperscaler customers, such as Amazon (AMZN), Microsoft (MSFT), and OpenAI, is also a concern, but Nvidia has made efforts to diversify its revenue streams.
The data center segment saw an impressive 117% year-over-year growth, surpassing analyst estimates. Gross margins expanded to 75%, with a forecasted range of 73.5-74.5% for the next quarter. Earnings per share rose 120% from the prior year to $2.22, beating consensus estimates.