Introduction: NVIDIA’s Basic EPS Growth benchmark in 2024
In the competitive landscape of the technology industry, key financial metrics such as Basic Earnings Per Share (EPS) growth serve as critical indicators of a company’s performance and competitive positioning. NVIDIA Corporation, a renowned player in the semiconductor and graphics processing unit (GPU) market, stands out among its peers with remarkable Basic EPS growth. In this article, we analyze NVIDIA’s Basic EPS growth in comparison to its competitors to assess its relative performance and market position.
Understanding Basic EPS Growth
Basic EPS growth reflects the percentage change in a company’s earnings per share over a specified period, typically year-over-year. A positive growth rate indicates that a company is generating higher earnings per share, signaling potential profitability and value creation for shareholders.
Benchmarking NVIDIA Against Competitors
This table provides a clear comparison of the Basic EPS growth (%) for NVIDIA Corporation and its competitors in the related industry or sector.
| Company | Ticker | Basic EPS Growth (%) |
|---|---|---|
| Ambarella Inc | AMBA | -81.3 |
| Intel Corporation | INTC | -79.3 |
| Advanced Micro Devices Inc | AMD | -37.4 |
| Qualcomm Incorporated | QCOM | -33.6 |
| Texas Instruments Incorporated | TXN | -25.0 |
| STMicroelectronics N.V. | STME.F | -2.4 |
| Applied Materials Inc | AMAT | 9.0 |
| Microchip Technology Inc | MCHP | 15.5 |
| Microsoft Corporation | MSFT | 22.9 |
| Altair Engineering Inc | ALTR | 71.3 |
| NVIDIA Corporation | NVDA | 220.8 |
Analysis of NVIDIA’s Performance
NVIDIA’s Basic EPS growth of 220.8% far surpasses that of its competitors, positioning the company as a standout performer in the industry. This exceptional growth rate underscores NVIDIA’s robust financial performance and its ability to capitalize on market opportunities effectively.
Comparison with Industry and Sector Averages
When compared to the Information Technology (IT) sector average and the industry average, NVIDIA’s Basic EPS growth significantly outperforms, indicating its strong competitive position and potential for sustained growth and value creation.
NVIDIA’S EPS Performance Over Last Four Quarters
The table below summarizes NVIDIA’s performance over the last four quarters:
| Quarter Ending | Basic EPS Incl Extra Items | Growth |
|---|---|---|
| 2023-01-29 | 0.57 | −52.1% |
| 2023-04-30 | 0.83 | 28.1% |
| 2023-07-30 | 2.50 | 851.7% |
| 2023-10-29 | 3.75 | 1,267.5% |
This table provides a snapshot of NVIDIA’s earnings performance, showcasing the basic EPS including extra items for each quarter and the corresponding growth rate compared to the previous period.
Factors Driving NVIDIA’s Growth
Several factors contribute to NVIDIA’s impressive Basic EPS growth:
- Innovative Products: NVIDIA’s cutting-edge GPU technology and solutions for artificial intelligence (AI), gaming, and data centers have fueled demand and revenue growth, driving earnings per share higher.
- Strategic Partnerships: Collaborations with key industry players and strategic acquisitions have expanded NVIDIA’s market reach and diversified its revenue streams, contributing to enhanced profitability.
- Market Leadership: NVIDIA’s leadership position in the GPU market and its strong brand recognition have enabled the company to command premium prices and capture market share, resulting in increased earnings per share.
NVIDIA’s EPS Performance Summary
Here is the NVIDIA’s Lastest Earning Per Share Performance Summary:
- Latest Twelve Months Basic EPS Growth: NVIDIA has demonstrated an impressive basic EPS growth of 220.8% over the last twelve months, indicating significant earnings expansion within a relatively short timeframe.
- Average Basic EPS Growth (2019-2023): Over the fiscal years ending from January 2019 to 2023, NVIDIA’s basic EPS growth averaged 24.4%, highlighting a consistent upward trend in earnings performance over this period.
- Median Basic EPS Growth (2019-2023): NVIDIA’s median basic EPS growth for the same period stood at 33.9%, showcasing the company’s solid financial performance relative to its industry peers.
- Peak and Low Basic EPS Growth: The highest basic EPS growth for NVIDIA occurred in October 2023, reaching 220.8%, while the lowest point was recorded in January 2023 at -55.0%, demonstrating the company’s capacity for both remarkable growth and occasional downturns.
- Basic EPS Growth Fluctuations: NVIDIA’s basic EPS growth has experienced fluctuations over the past five years. It decreased in 2019 (-48.0%) and 2020 (-196.4%), rebounded in 2021 (53.2%), surged in 2022 (122.5%), and then declined again in 2023 (-55.0%), showcasing both periods of growth and challenges in the company’s earnings trajectory.
Conclusion
In conclusion, NVIDIA Corporation’s Basic EPS growth stands as a testament to its financial strength, market leadership, and strategic prowess. With a remarkable growth rate that outpaces competitors and industry averages, NVIDIA demonstrates its resilience and capacity for sustained success in the dynamic and competitive technology landscape. As NVIDIA continues to innovate and capitalize on emerging opportunities, it remains well-positioned to deliver value to shareholders and maintain its leadership position in the semiconductor and GPU market.
