AI chip giant NVIDIA (NVIDIA) announced financial results for the fourth fiscal quarter and fiscal year 2023 for the fourth fiscal quarter and fiscal year ending January 29, 2023, after the US stock market on February 22, as well as performance guidelines for the new fiscal quarter. Financial reports and guidance have surpassed market expectations, but weak fundamentals and high valuations still require vigilance.
1. Overall performance exceeds market expectations, inventory may be close to peak
Revenue for the fourth fiscal quarter of fiscal year 2023 was 6.05 billion US dollars, down 21% year on year, up 2% month on month, and net profit was 1.4 billion US dollars, down 53% year on year, exceeding market expectations. Non-GAAP diluted earnings per share fell 33% year over year (up 52% month on month) to $0.88, and non-GAAP gross margin fell 0.9 percentage points year over year (up 10 percentage points month over month) to 66.1%.
The number of inventory turnover days increased to 211.66, YoY +136.08%, and is expected to be close to the high inventory level. Despite high inventories, the company's gross margin did not decline significantly, mainly because the company used a strategy of increasing prices for new products to force consumers to buy in-stock products. Instead of using price cuts to clear inventory, it focused more on new products. In the middle to late last year, Nvidia released a new RTX 40 series video card. Performance improvements were limited, but pricing increased significantly, forcing consumers to buy old video cards. It can also be seen from the management's statement that “the gaming graphics card inventory crisis is almost over”...