Nvidia Q1 FY2023 Earnings Report: $8.3B Revenue and 49.5% EPS Growth in 2022
Nvidia's Q1 FY2023 earnings exceeded expectations with record revenue driven by booming data center demand, marking a major shift from gaming to AI-powered platforms.
Nvidia (NVDA) delivered outstanding Q1 FY2023 financial results, surpassing analyst forecasts on both earnings and revenue fronts.
Highlights
- Data center revenue surged past expectations, accelerating growth compared to the previous quarter.
- Strong demand for data center services, fueled by the pandemic-driven shift to remote work, boosted Nvidia's chip sales.
- For the first time, data center revenue overtook gaming revenue, becoming Nvidia's largest business segment.
Source: Analyst consensus data from Visible Alpha
Nvidia (NVDA) Q1 FY2023 Financial Overview
On May 25, 2022, Nvidia reported Q1 FY2023 earnings that exceeded Wall Street estimates. Adjusted earnings per share (EPS) rose an impressive 49.5% year-over-year (YOY), while revenue climbed 46.4% YOY to a record $8.3 billion. The data center segment outperformed expectations, driving much of this growth.
Despite the strong results, Nvidia’s stock dipped over 9% in after-hours trading. Over the last 12 months, the stock has returned 8.6%, outperforming the S&P 500's -5.9% return.
Data Center Segment Growth
Nvidia’s data center revenue jumped 83.1% YOY, outpacing the previous quarter’s growth rate. At $3.8 billion, data center revenue surpassed gaming revenue ($3.6 billion) for the first time, with both segments achieving record quarterly sales.
While Nvidia has long been a leader in gaming GPUs, its expertise in high-performance graphics processing has positioned it well for artificial intelligence (AI) and machine learning applications—key drivers in the expanding data center market. The pandemic accelerated demand for remote computing power, further boosting Nvidia’s chip sales in this sector.
Looking ahead, growing interest in the metaverse—powered by virtual reality (VR) and augmented reality (AR)—is expected to create new opportunities for Nvidia’s data center chips.
Outlook
Nvidia forecasts Q2 FY2023 revenue of approximately $8.1 billion, representing an estimated 24.5% YOY increase.
The next earnings report is anticipated on August 16, 2022.
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