Shulou(Shulou.com)11/24 Report--

On the morning of February 23, Beijing time, Nvidia released its results for the fourth quarter and full year of 2023. According to the financial report, Nvidia's fourth-quarter revenue was $6.051 billion, down 21% from a year earlier, but increased by 2% month-on-month, while net profit was $1.414 billion, an increase of 108% from the previous quarter, and the overall performance exceeded market expectations.

Shares of Nvidia, which closed up nearly 0.5 per cent on Wednesday, continued to rise after US stocks were announced, rising as much as 8.7 per cent to $225.6.

It can be found in the financial results that the overall better-than-expected performance is mainly due to the strong recovery of Nvidia's game business. Fourth, Ji Yingweida's game-related revenue reached $1.83 billion, up 16% from a month earlier and higher than analysts' expectations of $1.6 billion.

"the game business is recovering from the downturn after the epidemic, and gamers enthusiastically embrace the new Ada architecture GPU, which has the ability to render AI nerves." Nvidia CEO Huang Renxun said in a statement after the financial report.

In September last year, Nvidia released its flagship RTX40 series of desktop graphics cards, powered by a more efficient Ada Lovelace architecture, making a qualitative leap in performance and AI-driven graphics.

At the CES exhibition on January 4 this year, Nvidia unveiled the new GeForce RTX 40 series notebook GPU, including the flagship RTX 4090 and RTX 4080, as well as the mainstream RTX 4070, 4060 and 4050 laptop GPU. At the same time, they also launched the RTX 4070 Ti desktop graphics card, which is more powerful and more expensive than RTX3090Ti.

Not only that, Nvidia also said that 50 games that have been released or are about to be released, including Cyberpunk 2077, Marvel Spider-Man: miles, Atomic Heart, and son of the Dark Night, support the new DLSS 3 technology.

In addition, they have launched the GeForce NOW Ultimate ultimate cloud game membership level, which can replace its widely acclaimed RTX 3080 supercomputer with RTX 4080. Enjoy the fast frame rate, amazing graphics and top performance of GeForce NOW Ultimate.

Nvidia also recently signed a 10-year agreement with Microsoft to introduce Xbox PC games (including my World, Halo, etc.) to GeForce NOW. After Microsoft's acquisition of Activision Blizzard, GeForce NOW will also add games such as call of Duty and Watchman Vanguard.

All these actions have been an important factor in Nvidia's gaming business boost in the past quarter.

At the same time, recently, masterpieces such as "Legacy of Hogwarts" and "Heart of the Atom" have been put on the market, while Nvidia's new RTX40 series desktop and laptop GPU lineup is ready, which is expected to promote the further recovery of Nvidia's gaming business.

In addition to the gaming business, the results showed that the data center business, another core business, achieved revenue of $3.62 billion, an increase of 11% over the same period last year.

In addition, Nvidia's fourth-quarter revenue included $226 million from professional design visualization and $294 million from its automotive business.

In the earnings report, Nvidia CEO Huang Renxun also talked about the rise of generative artificial intelligence, especially since ChatGPT has recently attracted a great deal of attention from the media and investors. Huang Renxun said it was at an "inflection point" and would be "widely used in every industry". While announcing the results, Nvidia also introduced its AI cloud service products, and they said that they are working with cloud service giants to launch AIaaS services (artificial intelligence as a service), so that enterprises can enjoy the services brought by Nvidia's leading global AI platform.

For the outlook for future performance, Nvidia said in the financial report that its revenue is expected to reach $6.5 billion in the first quarter of fiscal 2024, up or down 2%, exceeding analysts' expectations. At the same time, in the first quarter of fiscal 2024, the company's gross profit margin in accordance with and without GAAP is expected to reach 64.1% and 66.5%, respectively, fluctuating by 50 basis points.

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