Nvidia Projects Sales , Nvidia shares soar on Q4 earnings beat on AI, Gaming Demand , II Nvidia shares surge more than 10% after big beat, strong outlook

Nvidia 

Nvidia Corp. shares surged more than 10% in the extended session Thursday after the chipmaker’s quarterly results and outlook roared past Wall Street estimates, and investors appeared unconcerned that auto-chip sales missed analyst targets for another quarter.
Nvidia NVDA, -4.93%  shares soared 11% to $241.42 after hours at last check, following a 4.9% decline during the regular session. Shares traded about 3% shy of their all-time high of $249.27, set on Jan. 31. At Thursday’s close, Nvidia shares were up 83% over the past 12 months. In comparison, the S&P 500 index SPX, -3.75%  is up about 12%, the PHLX Semiconductor index SOX, -4.23%  is up 25% and the Nasdaq Composite Index COMP, -3.90%  is up 19%
Expect a slew of price hikes from analysts on Friday. The average target price on the stock from the 33 analysts who cover it was $218.75 at Thursday’s close, according to FactSet.
The company reported fourth-quarter net income of $1.12 billion, or $1.78 a share, compared with $655 million, or 99 cents a share, in the year-ago period. Adjusted earnings were $1.72 a share. Of the 23 analysts surveyed by FactSet, Nvidia on average was expected to post adjusted earnings of $1.16 a share. Estimize, a software platform that uses crowdsourcing from hedge-fund executives, brokerages, buy-side analysts and others, called for earnings of $1.27 a share.
Revenue rose to $2.91 billion from $2.17 billion in the year-ago period. Wall Street had expected revenue of $2.68 billion, according to 26 analysts polled by FactSet. Nvidia had predicted revenue of $2.6 billion to $2.7 billion. Estimize expected revenue of $2.74 billion.
Gaming revenue rose 29% to $1.74 billion, while analysts expected 14% growth to $1.54 billion from the year-ago period, according to FactSet.

 

Data-center revenue soared 105% to $606 million, while analysts expected a consensus of 85% growth to $548.1 million.
“Industries around the world are racing to incorporate AI. Virtually every internet and cloud service provider has embraced our Volta GPUs,” said Jensen Huang, founder and chief executive of Nvidia, in a statement.
Auto-related revenue, which was the only segment that missed Street estimates in the previous quarter, did so again by rising only 3% to $132 million, while analysts had expected a 19% gain to $152.2 million. Recently, Nvidia partnered with Uber Technologies Inc. and German auto supplier Continental AG to develop self-driving vehicle systems, while analysts have been praising the company’s opportunities in the auto market.
Also, data visualization revenue rose 13% to $254 million versus an expected 7% gain, and PC and mobile OEM revenue rose 2% to $180 million, versus an expected 3.4% decline.
Analysts surveyed by FactSet had estimated earnings of $1.16 a share on revenue of $2.68 billion. For the first quarter, Nvidia estimates revenue of $2.84 billion to $2.96 billion, while analysts had estimated revenue of $2.46 billion. Estimize expects $2.5 billion.
Nvidia also said it expects to return another $1.25 billion to shareholders in the coming year through share buybacks and dividends, after returning $909 million in share repurchases and $341 million in dividends over the past year.

Nvidia crushed market estimates on Thursday when it reported its Q4 and fiscal year financial results. Every one of Nvidia's business segments were up, with datacenter have the biggest growth margin followed by gaming.
The Santa Clara, Calif.-based company delivered a net income of $1.1 billion, or $1.78 per share.
Non-GAAP earnings were $1.72 cents per share on revenue of $2.91 billion, up 34 percent year-over-year.Wall Street was looking for earnings of just $1.16 per share with $2.68 billion in revenue.
For the year, Nvidia delivered EPS of $4.82 on revenue of $9.71 billion, up 41 percent from a year ago. Analysts expected EPS of $4.22 on revenue of $9.48 billion.
Shares of Nvidia were up more than 12 percent in after market trading.

 

Nvidia founder and CEO Jensen Huang credited the strong quarter and finish to the fiscal year on the momentum behind the company's GPU computing platform.
"Industries around the world are racing to incorporate AI. Virtually every internet and cloud service provider has embraced our Volta GPUs. Hundreds of transportation companies are using our NVIDIA DRIVE platform. From manufacturing and healthcare to smart cities, innovators are using our platform to invent the future," he said.

 

In terms of guidance, Nvidia expects Q1 revenue of $2.90 billion, plus or minus two percent, above market estimates for $2.47 billion in revenue.