Nvidia’s latest quarterly results exceeded both the company’s and investor expectations. The company posted quarterly revenue of $57.0 billion which exceeded the $54.0 billion of revenue the company guided for. This $3 billion beat was their strongest beat ever and underscores the demand the company is seeing. Earnings per share (“EPS”) of $1.30 exceeded the FactSet consensus estimate of $1.26. And, perhaps most importantly, the company forecasted next quarter’s revenue to fall between $63.7 to $66.3 billion.
Nvidia’s gross margin result and outlook looks good. In my opinion, higher gross margins often signal competitive advantages and a higher willingness to pay from customers, among other factors. This metric can be an early indicator that demand may not be as robust as it has been in the past if it begins to deteriorate. This quarter, Nvidia’s non-GAAP gross margin continued it ascent higher to 73.6% relative to 72.7% last quarter. Further, the company guided for next quarter’s gross margin to be roughly 75%. This positive trend may reassure that Nvidia’s pricing power remains strong.
Nvidia posted its largest revenue beat in recent history. The company’s gross margin did and is expected to expand and earnings per share continue to grow.
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