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Nvidia (NVDA) International Revenue in Focus: Trends and Expectations
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Did you analyze how Nvidia (NVDA - Free Report) fared in its international operations for the quarter ending April 2024? Given the widespread global presence of this maker of graphics chips for gaming and artificial intelligence, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
While delving into NVDA's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
The recent quarter saw the company's total revenue reaching $26.04 billion, marking an improvement of 262.1% from the prior-year quarter. Next, we'll examine the breakdown of NVDA's revenue from abroad to comprehend the significance of its international presence.
A Closer Look at NVDA's Revenue Streams Abroad
Other countries accounted for 6.3% of the company's total revenue during the quarter, translating to $1.65 billion. Revenues from this region represented a surprise of -59.96%, with Wall Street analysts collectively expecting $4.11 billion. When compared to the preceding quarter and the same quarter in the previous year, Other countries contributed $7.99 billion (36.2%) and $659 million (9.2%) to the total revenue, respectively.
During the quarter, China (including Hong Kong) contributed $2.49 billion in revenue, making up 9.6% of the total revenue. When compared to the consensus estimate of $4.41 billion, this meant a surprise of -43.48%. Looking back, China (including Hong Kong) contributed $1.95 billion, or 8.8%, in the previous quarter, and $1.59 billion, or 22.1%, in the same quarter of the previous year.
Of the total revenue, $4.37 billion came from Taiwan during the last fiscal quarter, accounting for 16.8%. This represented a surprise of -19.01% as analysts had expected the region to contribute $5.4 billion to the total revenue. In comparison, the region contributed $4.44 billion, or 20.1%, and $1.8 billion, or 25%, to total revenue in the previous and year-ago quarters, respectively.
International Market Revenue Projections
For the current fiscal quarter, it is anticipated by Wall Street analysts that Nvidia will report a total revenue of $28.25 billion, which reflects an increase of 109.1% from the same quarter in the previous year. The revenue contributions are expected to be 15.9% from Other countries ($4.49 billion), 15.5% from China (including Hong Kong) ($4.39 billion) and 20.5% from Taiwan ($5.8 billion).
For the full year, the company is expected to generate $116.4 billion in total revenue, up 91.1% from the previous year. Revenues from Other countries, China (including Hong Kong) and Taiwan are expected to constitute 14.9% ($17.33 billion), 15% ($17.4 billion) and 19.5% ($22.66 billion) of the total, respectively.
Final Thoughts
Relying on international markets for revenues, Nvidia faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
A Review of Nvidia's Recent Stock Market Performance
The stock has witnessed an increase of 28.8% over the past month versus the Zacks S&P 500 composite's an increase of 4.1%. In the same interval, the Zacks Computer and Technology sector, to which Nvidia belongs, has registered an increase of 7.7%. Over the past three months, the company's shares saw an increase of 19.2%, while the S&P 500 increased by 3.2%. In comparison, the sector experienced an increase of 5.8% during this timeframe.
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Nvidia (NVDA) International Revenue in Focus: Trends and Expectations
Did you analyze how Nvidia (NVDA - Free Report) fared in its international operations for the quarter ending April 2024? Given the widespread global presence of this maker of graphics chips for gaming and artificial intelligence, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
While delving into NVDA's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
The recent quarter saw the company's total revenue reaching $26.04 billion, marking an improvement of 262.1% from the prior-year quarter. Next, we'll examine the breakdown of NVDA's revenue from abroad to comprehend the significance of its international presence.
A Closer Look at NVDA's Revenue Streams Abroad
Other countries accounted for 6.3% of the company's total revenue during the quarter, translating to $1.65 billion. Revenues from this region represented a surprise of -59.96%, with Wall Street analysts collectively expecting $4.11 billion. When compared to the preceding quarter and the same quarter in the previous year, Other countries contributed $7.99 billion (36.2%) and $659 million (9.2%) to the total revenue, respectively.
During the quarter, China (including Hong Kong) contributed $2.49 billion in revenue, making up 9.6% of the total revenue. When compared to the consensus estimate of $4.41 billion, this meant a surprise of -43.48%. Looking back, China (including Hong Kong) contributed $1.95 billion, or 8.8%, in the previous quarter, and $1.59 billion, or 22.1%, in the same quarter of the previous year.
Of the total revenue, $4.37 billion came from Taiwan during the last fiscal quarter, accounting for 16.8%. This represented a surprise of -19.01% as analysts had expected the region to contribute $5.4 billion to the total revenue. In comparison, the region contributed $4.44 billion, or 20.1%, and $1.8 billion, or 25%, to total revenue in the previous and year-ago quarters, respectively.
International Market Revenue Projections
For the current fiscal quarter, it is anticipated by Wall Street analysts that Nvidia will report a total revenue of $28.25 billion, which reflects an increase of 109.1% from the same quarter in the previous year. The revenue contributions are expected to be 15.9% from Other countries ($4.49 billion), 15.5% from China (including Hong Kong) ($4.39 billion) and 20.5% from Taiwan ($5.8 billion).
For the full year, the company is expected to generate $116.4 billion in total revenue, up 91.1% from the previous year. Revenues from Other countries, China (including Hong Kong) and Taiwan are expected to constitute 14.9% ($17.33 billion), 15% ($17.4 billion) and 19.5% ($22.66 billion) of the total, respectively.
Final Thoughts
Relying on international markets for revenues, Nvidia faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
Nvidia, bearing a Zacks Rank #1 (Strong Buy), is expected to outperform the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
A Review of Nvidia's Recent Stock Market Performance
The stock has witnessed an increase of 28.8% over the past month versus the Zacks S&P 500 composite's an increase of 4.1%. In the same interval, the Zacks Computer and Technology sector, to which Nvidia belongs, has registered an increase of 7.7%. Over the past three months, the company's shares saw an increase of 19.2%, while the S&P 500 increased by 3.2%. In comparison, the sector experienced an increase of 5.8% during this timeframe.