NVIDIA (NASDAQ: NVDA) he put the finishing touches on his incredible fiscal year 2021 – the 12 months ended on 31 January. Fourth-quarter revenue increased 61% year-over-year to $ 5.0 billion, ahead of management guidance provided a few months earlier for revenue of up to $ 4.9 billion. Adjusted net income increased 67% to $ 1.96 billion.
The pioneer of the graphics processing unit is in full swing at the beginning of the new year and said he expects revenue to be $ 5.3 billion at the midpoint of his projection for the first quarter. The outlook is for a 71% increase over the first quarter of last year.
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The gears of innovation are turning
It is difficult to quickly summarize everything that is happening at NVIDIA today. The company’s expanding portfolio of GPUs and related semiconductor system designs is emerging rapidly as The leader in next generation computing. Through healthcare, automotive, cloud computing and personal computing technology, NVIDIA achieves more lives every day than the average consumer can imagine.
But two basic trends have driven the company’s bottom line and will continue to do so: games (the realm in which NVIDIA traces its roots) and data centers. Both segments recorded record sales in the fourth quarter. Gaming revenue was $ 2.5 billion, an increase of 67% over last year, driven by the launch of its new RTX 30 series GPUs for cutting-edge video game graphics. Management said it estimates that only 15% of players have RTX 30 hardware, not to mention the millions of new players being converted each year. The RTX 30 is expected to continue to drive robust growth in the gaming segment next year.
Data center revenue in the fourth quarter was $ 1.9 billion, an increase of 97% over the previous year, with the start of a new data center update cycle. Unlike other times, the GPU is being featured prominently in data centers as a computing accelerator – raising the bar for cloud computing services and helping organizations harness the power of artificial intelligence. These network hardware updates are also in the early stages and are expected to continue in the near future.
Simply put, NVIDIA’s double-digit sales growth race seems far from over as it begins the fiscal year 2022.