Nvidia revenue jumps 84% from last year as gamers demand graphics chips

Earnings

In this article

Jen-Hsun Huang, president and chief executive officer of Nvidia Corp., speaks during the company’s event at Mobile World Congress Americas in Los Angeles on Oct. 21, 2019.
Patrick T. Fallon | Bloomberg | Getty Images

Nvidia reported first quarter results for its fiscal 2022 on Wednesday, with sales growing 88% compared to last year.

Earnings and sales both beat Wall Street expectations, but the shares were basically unchanged in extended trading.

Here’s how the chipmaker did, versus Refinitiv consensus estimates:

  • Revenue: $5.66 billion versus $5.41 billion estimated
  • Earnings: $3.66, adjusted, versus $3.28 per share estimated

Nvidia’s earnings come during a period of sustained, massive growth in its business amid a shortage of semiconductors worldwide. In the quarter ending in March, Nvidia’s sales were up 83% percent compared to the same period last year.

The number-crunching graphics processors Nvidia makes are essential for PC games, artificial intelligence, and cryptocurrency mining.

Its graphics segment, mostly graphics cards, was up 81% to $3.45 billion in revenue. Nvidia said that sales of its consumer GeForce GPUs drove the increased revenue, in addition to chips it sells to game console makers.

Broken down by market platform instead of reportable segment, Nvidia said its Gaming products were up 106% on an annual basis to $2.76 billion in sales.

The compute and networking segment, which includes chips for data centers, was up 88% to $2.21 billion. Nvidia said that sales were boosted partially by Mellanox, a data center company it bought last year, as well as increased demand for graphics processors in servers.

Nvidia has also had supply issues for months. Its consumer graphics cards are consistently sold out around the world, and Nvidia has added new software to make them less attractive to cryptocurrency miners in an effort to reserve supply for other buyers.

Nvidia said on Wednesday that it believed cryptocurrency miners were partially responsible for its increased revenue, but “it is hard to determine to what extent.” Nvidia said that the processors it sells specifically for cryptocurrency miners had sales of $155 million.

Nvidia announced last year that it planned to buy ARM, a core processor technology company, for $40 billion.

Last week, Nvidia announced that it plans to split its stock four-to-one, pending shareholder approval.

This story is developing, check back for updates.

Articles You May Like

Data centers powering artificial intelligence could use more electricity than entire cities
73% of workers worry Social Security won’t be able to pay retirement benefits. Here’s what advisors say
Budget travel icon Spirit Airlines files for bankruptcy protection after mounting losses
How to optimize your holiday travel budget on ‘Travel Tuesday’
Trump Tax Cuts And 11 Other Reasons To Skip A Roth Conversion

Leave a Reply

Your email address will not be published. Required fields are marked *