Founder, President and CEO of Nvidia Jen-Hsun Huang
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Nvidia exceeded analysts’ high expectations for earnings and revenue for the fourth quarter of its fiscal year, which ended in December.
Nvidia’s shares rose less than 2% in the extended trades.
Here’s how Nvidia did it:
- Earnings: $ 3.10 per share, adjusted, vs. $ 2.81 per share as expected by analysts, according to Refinitiv.
- Recipe: US $ 5.00 billion, against US $ 4.82 billion expected by analysts, according to Refinitiv.
Sales increased 61% year on year.
Investors had expected revenue growth of more than 55% over last year and Nvidia has exceeded those expectations, even during a worldwide semiconductor shortage.
Nvidia also suggested that its wave of success would continue to forecast $ 5.3 billion in revenue for the current quarter, ahead of investor expectations of $ 4.51 billion.
Nvidia’s shares have seen a huge boost in recent months, up more than 106% last year. Investors see the chip maker in Santa Clara, California as an important supplier to several new technology 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.
Both had impressive quarters, which the company attributed in part to the impact of the Covid-19 pandemic. Graphics posted revenue of $ 3.06 billion, an increase of 47% over the same period last year. Computing and networking, the data center division, grew 91% year over year, to $ 1.95 billion.
PC games were a hot market during the pandemic, and Nvidia is perhaps best known for its graphics cards that enable high-performance games. She had trouble keeping her newest graphics cards in stock. Nvidia said its gaming performance was boosted by sales of its newest graphics cards.
Nvidia’s automotive business did not perform well during this quarter. It dropped 11% to $ 145 million, Nvidia said, and ended up dropping 23% year-round.
Last September, Nvidia said it planned to buy ARM from Softbank for $ 40 billion in a transaction with profound implications for the semiconductor industry. ARM develops low-level technology that is widely used across the industry to develop low-power chips for mobile devices – and provides technology to most of Nvidia’s competitors. Companies are already lining up to challenge the deal through regulatory channels.
“We are making good progress in acquiring Arm, which will create huge new opportunities for the entire ecosystem,” said Nvidia CEO Jensen Huang in a statement.