Jen-Hsun Huang, Founder and CEO of Nvidia
Nvidia beat analysts’ high earnings and revenue expectations for the fourth quarter of its fiscal year, which ended in December.
Nvidia stock rose less than 2% in extended trading.
Here’s how Nvidia did it:
- Earnings: $ 3.10 per share, adjusted, compared to $ 2.81 per share as expected by analysts, according to Refinitiv.
- Returned: $ 5.00 billion, compared to $ 4.82 billion as expected by analysts, according to Refinitiv.
Sales increased 61% year over year.
Investors had expected revenue growth of over 55% from last year and Nvidia exceeded those expectations, even during a global semiconductor shortage.
Nvidia also suggested that its hot streak would continue by forecasting revenue of $ 5.3 billion for the current quarter, ahead of investor expectations of $ 4.51 billion.
Nvidia stock has had a lot of momentum in recent months, with stock rising over 106% last year. Investors see the Santa Clara, Calif., Chipmaker as a key supplier of several emerging tech trends. It sells semiconductor components for games, artificial intelligence, data centers and automobiles.
Nvidia has two main segments: Graphics, which are primarily its graphics cards for consumers and professionals, and Computing and Networking, which includes chips for data centers, automobiles, and robots.
The two have had impressive quarters, which the company attributed in part to the impact of the Covid-19 pandemic. Graphics reported sales of $ 3.06 billion, up 47% from the same period last year. Compute and Networking, the data center division, grew 91% year-over-year to $ 1.95 billion.
PC gaming has been a hot market during the pandemic, and Nvidia is perhaps best known for its graphics cards that enable high-performance gaming. He had problems keeping his 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 perform well this quarter. It was down 11% to $ 145 million, Nvidia said, and it ended up down 23% for the entire year.
Last September, Nvidia announced plans to buy ARM from Softbank for $ 40 billion in a transaction with far-reaching implications for the semiconductor industry. ARM is developing low-level technology widely used in industry to develop low-power chips for mobile devices – and supplying the technology to most of Nvidia’s competitors. Businesses are already lining up to oppose the deal via regulatory channels.
“We are making good progress with the acquisition of Arm, which will create huge new opportunities for the entire ecosystem,” Nvidia CEO Jensen Huang said in a statement.