After the U.S. stock market on February 14, Beijing time, chip giant NVIDIA announced its Q4 fiscal year 2020 financial report. Data show that during the period, revenue was US $ 3.11 billion, a surge of 41% year-on-year, an increase of 3% month-on-month, and exceeding market expectations of US $ 2.97 billion; net profit of US $ 950 million, a surge of 68% year-on-year, better than market expectations of US $ 830 million . The revenue and profit doubled the market expectations, pushing its stock price after the market rose over 7% to 288.14 US dollars, breaking the 52-week high.
It is not easy to achieve the expected performance of both revenue and net profit in the fourth quarter. After all, Nvidia’s revenue and net profit showed a year-on-year decline in the last quarter.
However, we should also see that Nvidia itself is in a challenging competitive environment. In the fourth quarter, rivals Intel and AMD achieved net revenues that exceeded market expectations. In addition, we also noticed that Intel reduced its revenue forecast for the next quarter by US $ 100 million, but it was still higher than analysts’ expectations, which is related to the current epidemic. You know, according to regulatory data, 24% of Nvidia’s revenue in 2019 will come from China. The domestic epidemic will also adversely affect Nvidia’s data center, smart car and gaming businesses in the coming quarters. So, from this financial data, what value points can we discover?
Net revenue doubles market expectations, data center business surges 43% and sets new revenue record
Financial reports show that in the fiscal quarter ended January 26, 2020, Nvidia’s revenue was US $ 3.105 billion, an increase of 41% compared to US $ 2.205 billion in the same period last year, and US $ 3.014 billion in the previous quarter. Compared with a 3% increase, this performance also exceeded analysts’ general expectations of 2.97 billion US dollars. Able to return to its peak after four consecutive quarters of revenue decline, in addition to the gaming business, Nvidia’s data center business has made a significant contribution. Nvidia says performance guidance