Nvidia Founder, President and CEO Jen-Hsun Huang
Nvidia exceeded analysts’ high expectations for both earnings and revenue for the fourth quarter of the fiscal year, which ended in December.
Nvidia shares were up below 2% during extended trading.
This is how Nvidia did it:
- Income: $ 3.10 per share, adjusted, vs. $ 2.81 per share as expected by analysts, according to Refinitiv.
- Revenue: $ 5.00 billion, versus $ 4.82 billion as expected by analysts, according to Refinitiv.
Sales were up 61% year over year.
Investors had expected revenue growth of more than 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 $ 5.3 billion in revenues for the current quarter, which is above investor expectations of $ 4.51 billion.
The Nvidia stock has gained a lot of momentum in recent months, its stock up more than 106% in the past year. Investors view the chipmaker in Santa Clara, California as a major provider of several new technology trends. It sells semiconductor components for gaming, artificial intelligence, data centers and automobiles.
Nvidia has two primary segments: Graphics, primarily consumer and professional graphics cards, and Compute 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 reported sales of $ 3.06 billion, up 47% from the same period last year. Compute and networking, the data center division, was up 91% year over year to $ 1.95 billion.
PC gaming was a hot market during the pandemic, and Nvidia is perhaps best known for its graphics cards that enable high-performance gaming. It has had trouble keeping its latest graphics cards in stock. Nvidia said its gaming performance was driven by the sale 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 the year at 23%.
Last September, Nvidia said it planned to buy ARM from Softbank for $ 40 billion in a transaction with major implications for the semiconductor industry. ARM develops low-level technology that is widely used in the industry to develop low-power chips for mobile devices – and it supplies technology to most of Nvidia’s competitors. Companies are already lining up to object to the deal through regulatory channels.
“We are making good progress on the Arm acquisition, which will create huge new opportunities for the entire ecosystem,” Nvidia CEO Jensen Huang said in a statement.