Nvidia Projects 65% Revenue Growth in April Quarter on Strong Chip Orders
**Nvidia Projects 65% Revenue Growth in April Quarter on Strong Chip Orders**
By Anissa Gardizy
a day ago
Source: The Information
Nvidia on Wednesday said revenue rose 78% year-over-year to $39.3 billion in the quarter ending in January, continuing a streak of more than two years of beating its own revenue growth projections. The company had projected 70% growth for the quarter three months ago and on Wednesday forecast 65% revenue growth to $43 billion in the current fiscal quarter, as demand for its artificial intelligence server chips continues to be strong.
Despite the results, shares were flat in after-hours trading, though they rose 3.5% in regular trading. Shares are down about 5% so far this year after a remarkable climb in the past two years.
Nvidia said its gross profit margin in the January quarter decreased by 1.6 percentage points to 73% compared to the October quarter due to its "transition to more complex and higher cost" server chip systems. The company projected gross margins to fall another roughly 2 percentage points in the current fiscal quarter. Free cash flow rose 38% to $15.5 billion in the January quarter compared to the same quarter a year ago but fell 7% compared to the October quarter.
Nvidia said $11 billion of the January quarter's revenue came from sales of its latest flagship chip, Blackwell. Nvidia chief financial officer Colette Kress said in a prepared statement that the revenue represents the “fastest product ramp in our company's history." Microsoft, Amazon, Google, and Meta Platforms have each placed Blackwell server rack orders of more than $10 billion apiece, The Information has reported. OpenAI, working with Oracle, has planned to rent large numbers of the chips as well.