Jen-Hsun Huang, CEO, Nvidia
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Nvidia reported first-quarter results for its fiscal 2022 on Wednesday, with sales growing 84% compared with 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
The earnings period ended May 2.
Nvidia’s earnings come during a period of sustained, massive growth in its business amid a shortage of semiconductors worldwide. Nvidia said it expected $6.30 billion in revenue in the current quarter, which would be a 62% increase over last year.
The number-crunching graphics processors (GPUs) Nvidia makes are essential for PC games, artificial intelligence and cryptocurrency mining.
Its graphics segment, comprised mostly of graphics cards, was up 81% to $3.45 billion in revenue. 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.
Nvidia CFO Colette Kress said that gamers and students are behind the increased demand for GPUs and that it expected that the current upgrade cycle would continue to be strong through the rest of the year. Sales of its consumer GeForce graphics processors drove the increased revenue in its gaming division, in addition to chips it sells to game console makers.
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 expected graphics cards to remain in short supply through the second half of the year, but that its new line of dedicated cryptocurrency chips, called CMP, could help ameliorate the problem.
“CMP yields better, and producing those doesn’t take away from the supply of GeForce. So it protects supply for the gamers,” Nvidia CEO Jensen Huang said on a call with analysts.
Nvidia said 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 CMP processors it sells specifically for cryptocurrency miners had revenue of $155 million. In the current quarter, Nvidia is expecting CMP sales around $400 million, Kress said.
Nvidia announced last year that it planned to buy ARM, a core processor technology company, for $40 billion. Kress said that the transaction was on track to close in 2022.
Last week, Nvidia announced that it plans to split its stock 4-to-1, pending shareholder approval.