NVIDIA’s revenue is down year-over-year, but its stock value is up 25%

When a company’s revenues drop, it is normal for the value of its shares to also fall, a reality that has not affected NVIDIA at all. The green giant has shared its latest quarterly results, and it has been confirmed that its revenue amounted to a total of 7,190 million dollars, an impressive figure that, however, represents a drop of 13% compared to the same period of the previous year, but also They have risen 19% compared to the previous quarter.

This data is negative, but it has a positive component, and that is that it represents an increase of 19% compared to the results of the previous quarter, which means that NVIDIA has returned to the path of growth, and that quarter over quarter its revenues have improved. With this clear, we are going to review the results that each sector has registered at the income level.

In the gaming sector, the company has registered income of $2.24 billion, which represents a drop of 38% compared to the same period of the previous year. However, if we compare with the previous quarter, revenues increased by 22%. Again we have negative data if we compare year on year, but favorable quarter to quarter.

We now jump to see the income derived from the data center sector, and we have a total of 4,280 million dollars, a figure that represents a growth of 14% compared to the same quarter of the previous year and an increase of 18% compared to the previous quarter. In this case, the result has been positive in both cases, and this confirms the weight that the professional sector has for NVIDIA, something understandable taking into account the rise of AI and its dependence on graphics accelerators, on specialized software ( algorithms and training models) and dedicated hardware (tensor cores).

Finally we have the revenue derived from “minor” units, such as professional virtualization and automotive, where NVIDIA posted revenue of $295 million and $296 million, respectively. In the virtualization sector, that figure represents a 53% drop compared to the same quarter of the previous year, and a 31% rise compared to last quarter. In the automotive sector, there was an increase of 114% compared to the same period of the previous yearand an increase of 1% compared to the previous quarter.

The results are very clear, and although they confirm an evident sequential drop (year over year), they also highlight quarter-over-quarter recovery. That is precisely where the key lies, in that recovery, and it is that despite the fact that we have a 13% drop year over year, their revenues increased 19% quarter over quarter. To this we must also add the growing importance that AI is having, the enormous interest it is generating and the excellent position that NVIDIA has in this sector, both at the software and hardware level. With this in mind, it’s easy to understand why its shares are up 25%.

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