Revenue for the quarter stood at $81.62 billion compared to estimates of $78.86 billion. Earnings Per Share (EPS) of $1.87 was also higher than the $1.76 estimate.
Nvidia’s Guidance
For the ongoing quarter, Nvidia expects $91 billion in revenue, higher than the estimates of close to $87 billion.
The guidance for the ongoing quarter does not account for any data center compute revenue from China.
Returning Money To Shareholders
Nvidia is also returning more cash to shareholders. The company generated $48.6 billion in free cash flow during the quarter, higher than $34.9 billion in the previous quarter and nearly double from the $26.1 billion generated during the same quarter last year.
The board has authorized $80 billion for buyback of the company’s equity shares from shareholders, higher than the $60 billion approved in August last year.
Nvidia has also increased its quarterly cash dividend payout to $0.25 from $0.01 earlier.
Competition Increasing
Nvidia acknowledged that the data center landscape has changed with its own customers potentially becoming competitors as they develop chips for their own use.
“Some of our customers are developing their own ASICs and other products, including designs optimized for certain workloads that may not require all of the features and functionality our data center systems provide,” the company said.
Although Nvidia did not name them, Google, Amazon, Meta and Microsoft are developing their own custom chips. In fact, Google announced this week that it will create a new AI infrastructure company of centered around these chips.
West Asia Update
Although Nvidia said that its global supply chain is yet to experience any significant impact from the West Asia instability, it observed that if the conflict extends or escalates, it could affect future product development, supply chain and revenue, and also create business uncertainties.
Stock Reaction
Shares of Nvidia are trading 1% lower after market hours on Wall Street. The stock is up 20% so far this year, but has rallied over 1,400% over a five-year period.
