Chip giant Nvidia (NVDA) reported fourth-quarter results that beat Wall Street estimates on both revenue and earnings.
But shares were flat after hours before the company’s conference call in part because its gross profit margin projection of 70.6% to 71% was lower than expected.
Shares closed up 3.7% at $131.28. They’re down slightly on the year but up 67% from a year ago.
💵💰Don’t miss the move: Subscribe to TheStreet’s free daily newsletter 💰💵
Nvidia said it earned 89 cents a share on a non-GAAP basis, up from 52 cents a share in the fourth quarter a year ago. Revenue was $39.33 billon, up 50.6% from a year ago.
For the year, revenue was $130.5 billion, up 122% from the 2023-2024 fiscal year.
Related: Analyst reboots Super Micro stock price target after SEC filing
Demand for the new, powerful Blackwell chip sets “is amazing as reasoning AI adds another scaling law,” CEO Jensen Huang said in a statement.
The company expects first-quarter revenue of $43 billion, plus or minus 2%. That would translate into 65% growth from the first quarter of the 2024-25 fiscal year. Operating expenses are projected at $5.2 billion on a GAAP basis and $3.6 billion on a non-GAAP basis.
More AI Stocks:
AI startup smashes funding round, signals big changes for health careAnalyst revisits Palantir stock forecast following annual report filingAnalyst who predicted Palantir rally picks best AI software stocks
Data center revenue, the heart of Nvidia’s business was $35.6 billion for the quarter, up 16% from a year ago. Full-year revenue for the business was $142 billion, up 142% from a year ago.
Nvidia data center business produces hyper-fast chips and related hardware and software that are at the core of the development of artificial intelligence.
Nvidia’s market cap at Wednesday’s close was $3.11 trillion, ahead of Microsoft (MSFT) at $2.97 trillion but behind Apple’s $3.61 trillion.
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
