Nvidia founder, president and CEO Jen-Hsun Huang
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Nvidia exceeded analysts’ high expectations for both earnings and revenue for the fourth quarter of the fiscal year, which ended in December.
Nvidia shares rose below 2% in extended transactions.
Here’s how Nvidia did it:
- income: $ 3.10 per share, adjusted, compared to $ 2.81 per share, as expected by analysts, according to Refinitiv.
- Income: $ 5.00 billion, compared to $ 4.82 billion, as expected by analysts, according to Refinitiv.
Sales increased by 61% year-on-year.
Investors expected revenue to grow by more than 55% over last year, and Nvidia exceeded those expectations, even during a global semiconductor shortage.
Nvidia also suggested that its hot series will continue with a revenue forecast of $ 5.3 billion for the current quarter, ahead of investor expectations of $ 4.51 billion.
Nvidia shares have gained momentum in recent months, the stock has grown by more than 106% in the last year. Investors see the chip maker in Santa Clara, California, as a key supplier for several new technology trends. Sells semiconductor components for games, artificial intelligence, data centers and cars.
Nvidia has two main segments: Graphics, which is primarily its graphics cards for consumers and professionals, and Computing and Networking, which includes chips for data centers, automobiles and robots.
Both had impressive quarters, which the company partially attributed to the impact of the Covid-19 pandemic. Charts reported revenue of $ 3.06 billion, up 47% from the same period last year. Computing and networking, the data center division, rose 91 percent year-over-year to $ 1.95 billion.
PC gaming was a hot market during the pandemic, and Nvidia is probably best known for its graphics cards that enable high-performance gaming. He had trouble keeping the latest graphics cards in stock. Nvidia said its gaming performance was driven by sales of the latest graphics cards.
Nvidia’s car business did not perform well this quarter. It fell 11 percent to $ 145 million, Nvidia said, and fell 23 percent year-over-year.
In September last year, Nvidia said it intended to buy ARM from Softbank for $ 40 billion in a deal with profound implications for the semiconductor industry. ARM is developing a low-level technology that is widely used throughout the industry to develop low-power chips for mobile devices – and provides the technology to most of Nvidia’s competitors. Companies are already aligning to object to the transaction through regulatory channels.
“We are making significant progress in the acquisition of Arm, which will create enormous new opportunities for the entire ecosystem,” Jensen Huang, CEO of Nvidia, said in a statement.