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Deciphering Nvidia (NVDA) International Revenue Trends
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Did you analyze how Nvidia (NVDA - Free Report) fared in its international operations for the quarter ending July 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.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
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 company's total revenue for the quarter stood at $30.04 billion, increasing 122.4% year over year. Now, let's delve into NVDA's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
Trends in NVDA's Revenue from International Markets
Of the total revenue, $3.67 billion came from China (including Hong Kong) during the last fiscal quarter, accounting for 12.2%. This represented a surprise of +27.49% as analysts had expected the region to contribute $2.88 billion to the total revenue. In comparison, the region contributed $2.49 billion, or 9.6%, and $2.74 billion, or 20.3%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Taiwan contributed $5.74 billion in revenue, making up 19.1% of the total revenue. When compared to the consensus estimate of $5.75 billion, this meant a surprise of -0.23%. Looking back, Taiwan contributed $4.37 billion, or 16.8%, in the previous quarter, and $2.84 billion, or 21%, in the same quarter of the previous year.
Anticipated Revenues in Overseas Markets
It is projected by analysts on Wall Street that Nvidia will post revenues of $32.59 billion for the ongoing fiscal quarter, an increase of 79.8% from the year-ago quarter. The expected contributions from China (including Hong Kong) and Taiwan to this revenue are 10.1% and 19.1%, translating into $3.27 billion and $6.21 billion, respectively.
For the full year, the company is expected to generate $122.19 billion in total revenue, up 100.6% from the previous year. Revenues from China (including Hong Kong) and Taiwan are expected to constitute 10.1% ($12.37 billion) and 18.4% ($22.46 billion) of the total, respectively.
The Bottom Line
The dependency of Nvidia on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.
With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Over the past month, the stock has gained 11.3% versus the Zacks S&P 500 composite's 4% increase. The Zacks Computer and Technology sector, of which Nvidia is a part, has risen 4% over the same period. The company's shares have declined 1.3% over the past three months compared to the S&P 500's 8.2% increase. Over the same period, the sector has risen 5.2%.
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Deciphering Nvidia (NVDA) International Revenue Trends
Did you analyze how Nvidia (NVDA - Free Report) fared in its international operations for the quarter ending July 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.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
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 company's total revenue for the quarter stood at $30.04 billion, increasing 122.4% year over year. Now, let's delve into NVDA's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
Trends in NVDA's Revenue from International Markets
Of the total revenue, $3.67 billion came from China (including Hong Kong) during the last fiscal quarter, accounting for 12.2%. This represented a surprise of +27.49% as analysts had expected the region to contribute $2.88 billion to the total revenue. In comparison, the region contributed $2.49 billion, or 9.6%, and $2.74 billion, or 20.3%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Taiwan contributed $5.74 billion in revenue, making up 19.1% of the total revenue. When compared to the consensus estimate of $5.75 billion, this meant a surprise of -0.23%. Looking back, Taiwan contributed $4.37 billion, or 16.8%, in the previous quarter, and $2.84 billion, or 21%, in the same quarter of the previous year.
Anticipated Revenues in Overseas Markets
It is projected by analysts on Wall Street that Nvidia will post revenues of $32.59 billion for the ongoing fiscal quarter, an increase of 79.8% from the year-ago quarter. The expected contributions from China (including Hong Kong) and Taiwan to this revenue are 10.1% and 19.1%, translating into $3.27 billion and $6.21 billion, respectively.For the full year, the company is expected to generate $122.19 billion in total revenue, up 100.6% from the previous year. Revenues from China (including Hong Kong) and Taiwan are expected to constitute 10.1% ($12.37 billion) and 18.4% ($22.46 billion) of the total, respectively.
The Bottom Line
The dependency of Nvidia on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Nvidia currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Nvidia's Recent Stock Market Performance
Over the past month, the stock has gained 11.3% versus the Zacks S&P 500 composite's 4% increase. The Zacks Computer and Technology sector, of which Nvidia is a part, has risen 4% over the same period. The company's shares have declined 1.3% over the past three months compared to the S&P 500's 8.2% increase. Over the same period, the sector has risen 5.2%.