Founder, President and CEO of Nvidia, Jen-Hsun Huang
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Nvidia exceeded analysts’ high expectations of both earnings and revenue in the fourth quarter of its fiscal year, which ended in December.
Nvidia shares rose below 2% in extended trading.
Here’s how Nvidia did it:
- Earnings: $ 3.10 per share, adjusted, versus $ 2.81 per share, as analysts expected, according to Refinitiv.
- Income: $ 5.00 million, up from $ 4.82 million as analysts expected, according to Refinitiv.
Sales increased 61% year-on-year.
Investors expected revenue growth of more than 55% over last year and Nvidia exceeded those expectations, even during the global semiconductor shortage.
Nvidia also suggested that its strong streak would continue to forecast revenue of $ 5.3 billion for the current quarter, ahead of investor expectations of $ 4.51 million.
Shares of Nvidia have gained a lot of momentum in recent months, and shares have risen more than 106% over the past year. Investors see the chip maker in Santa Clara, California, as a key supplier for several new technology trends. It sells semiconductor components for games, artificial intelligence, data centers and cars.
Nvidia has two main segments: Graphics, which are primarily its graphics cards for consumers and professionals, and Compute and Networking, which includes chips for data centers, cars, and robots.
Both had impressive quarters, which the company attributed in part to the impact of the Covid-19 pandemic. Charts reported revenue of $ 3.06 million, 47% more than the same period last year. Computing and networking, the data center division, rose 91 percent year-over-year to $ 1.952 billion.
PC gaming has been a hot market during the pandemic, and Nvidia is perhaps best known for its high-performance graphics cards. He has had trouble keeping his new graphics cards in stock. Nvidia said its gaming performance was boosted by sales of its new graphics cards.
Nvidia’s automotive business did not perform well during this quarter. It dropped 11% to $ 145 million, Nvidia said, and finished 23% year-over-year.
Last September, Nvidia said it planned to buy ARM from Softbank for $ 40 billion in a deal with profound implications for the semiconductor industry. ARM develops low-level technology widely used throughout the industry to develop low-power chips for mobile devices and supplies technology to most of Nvidia’s competitors. Companies are already lining up to oppose the deal through regulatory channels.
“We are making good progress towards the acquisition of Arm, which will create huge new opportunities for the entire ecosystem,” Nvidia CEO Jensen Huang said in a statement.