NVIDIA Stock Surges after Earnings Beat

Company Reports Strong Growth in Gaming and Data Center Businesses

Shares Rise Over 10% in Extended Trading

SANTA CLARA, Calif. — May 9, 2024 — NVIDIA Corporation (NASDAQ: NVDA) reported strong financial results for the first quarter of 2024, driven by robust growth in its gaming and data center businesses.

The company's revenue grew by 52% year-over-year to $8.6 billion, beating analysts' estimates. Gaming revenue surged by 65% to $5.6 billion, while data center revenue climbed by 40% to $2.5 billion. NVIDIA's automotive and professional visualization businesses also contributed to the company's growth, with revenue increasing by 15% and 20%, respectively.

NVIDIA's earnings per share came in at $1.32, an increase of 71% year-over-year. This also exceeded analysts' expectations, which were set at $1.24. The company's gross margin remained strong at 65.3%, down slightly from 65.6% in the previous quarter.

In extended trading after the earnings announcement, NVIDIA's share price surged by over 10%. This pushed the company's market capitalization past $500 billion, making it one of the most valuable companies in the technology sector.

Analysts attributed NVIDIA's strong performance to the company's leadership in the gaming and data center markets. NVIDIA's graphics cards are essential for high-end gaming, and the company's accelerated computing platforms are used by major cloud providers and data centers.

"NVIDIA continues to deliver exceptional financial results, driven by the strength of our gaming and data center businesses," said Jensen Huang, NVIDIA's founder and CEO. "Our innovative technologies are powering the future of gaming, artificial intelligence, and autonomous vehicles."

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