Nvidia beats as gross sales are up 61% 12 months over 12 months


Jen-Hsun Huang, Founder, President and CEO of Nvidia

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Nvidia exceeded analysts’ heightened earnings and revenue expectations for the fourth quarter of the fiscal year that ended in December.

Nvidia shares rose below 2% in extended trading.

This is how Nvidia did it:

Merits: $ 3.10 per share, adjusted compared to $ 2.81 per share analysts expected, according to Refinitiv.revenue: $ 5.00 billion versus $ 4.82 billion as analysts expected, according to Refinitiv.

Sales increased by 61% compared to the previous year.

Investors had expected revenue to grow over 55% year over year, and Nvidia beat those expectations even amid a global semiconductor shortage.

Nvidia also suggested continuing the hot phase and forecasting revenue of $ 5.3 billion for the current quarter, ahead of investor expectations of $ 4.51 billion.

Nvidia stock has gotten a lot of momentum over the past few months, with the stock rising over 106% over the past year. Investors see the chip manufacturer in Santa Clara, California as an important supplier for various new technology trends. It sells semiconductor components for games, artificial intelligence, data centers, and automobiles.

Nvidia has two main segments: Graphics, which are mostly consumer and professional graphics cards, and Compute and Networking, which includes chips for data centers, automobiles and robots.

Both had impressive quarters, which the company attributed in part to the effects of the Covid-19 pandemic. Graphics had sales of $ 3.06 billion, an increase of 47% over the same period last year. Compute and Networking, the data center business, grew 91% year over year to $ 1.95 billion.

PC gaming was a hot market during the pandemic, and Nvidia is perhaps best known for its graphics cards that enable high-performance gaming. There have been problems keeping the latest graphics cards in stock. Nvidia said its gaming performance was driven by sales of its latest graphics cards.

Nvidia’s automotive business did not do well during the quarter. It was down 11% to $ 145 million, and declined 23% year-round, according to Nvidia.

Last September, Nvidia announced it would buy ARM from Softbank for $ 40 billion, which will have a profound impact on the semiconductor industry. ARM is developing low-level technology widely used in the industry to develop low-power chips for mobile devices – and delivering technology to most of Nvidia’s competitors. Companies are already lining up to object to the deal through regulatory channels.

“We are making good progress in acquiring Arm, which will create tremendous new opportunities for the entire ecosystem,” said Jensen Huang, CEO of Nvidia, in a statement.


Katherine Clark