Nvidia Founder, Chairman and CEO Jen-Hsun Huang
Nvidia beat analysts’ lofty expectations for both earnings and revenue for the fourth quarter of its fiscal year, which ended in December.
Nvidia shares were up less than 2% in extended trading.
Here’s how Nvidia did it:
- Profits: $ 3.10 per share, adjusted, versus $ 2.81 per share as expected by analysts, according to Refinitiv.
- Income: $ 5.00 billion, versus $ 4.82 billion as analysts expected, according to Refinitiv.
Sales increased 61% year over year.
Investors were expecting revenue growth of more than 55% over last year, and Nvidia beat those expectations, even during a global semiconductor shortage.
Nvidia also suggested that its hot streak would continue by forecasting $ 5.3 billion in revenue for the current quarter, ahead of investor expectations of $ 4.51 billion.
Nvidia shares have had a lot of momentum in recent months, with shares rising more than 106% in the last year. Investors see the Santa Clara, California chipmaker as a key provider of several new 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, cars and robots.
Both had impressive quarters, which the company attributed in part to the impact of the Covid-19 pandemic. Graphics reported $ 3.06 billion in revenue, which was 47% more than the same period last year. Computing and Networking, the data center division, increased 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. You have had trouble keeping your newer graphics cards in stock. Nvidia said its gaming performance was driven by sales of its newer graphics cards.
Nvidia’s auto business did not perform well this quarter. It was down 11% to $ 145 million, Nvidia said, and ended up rising 23% for the full year.
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 industry-wide low-level technology to develop low-power chips for mobile devices and provides 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 Chief Executive Officer Jensen Huang said in a statement.