On Wednesday, Nvidia reported 4Q earnings beating analyst expectations. The company provided a strong outlook for the current quarter. The stock dropped about 2.1% in extended trading.
Here’s how the company did versus Refinitiv consensus expectations for the previous quarter:
Nvidia said it hopes to report a revenue of $8.3 billion in the first quarter. It is higher than analyst expectations of $7.29 billion. In a statement, Jensen Huang, Nvidia CEO, said that the company sees high demand. He said that it happens because its chips are helpful for AI and other intensive applications.
Huang also said the company’s supply conditions were easing. He also said that the company’s supply of products would grow substantially later in 2022.
Nvidia’s stock rebounded in 2021, but it is down about 11% so far. Investors are looking for safer investments in an inflationary atmosphere.
Even though the global economy is still slumping, the demand for chips from businesses and consumers is surprisingly robust. Nvidia has boosted as cloud providers and businesses turn to graphics processors for AI applications like speech recognition and recommendations. Nvidia reported $3.27 billion in sales from its data center business, up 72% annually.
During the quarter, Nvidia reported that Meta would use its chips for AI research. Gaming is Nvidia’s largest market, as its GeForce graphics processors are perfect for playing state-of-the-art computer games. The company said that the gaming business increased 38% year-over-year to $3.44 billion, driven by GeForce sales.
Businesses also use Nvidia’s chips for applications like computer-assisted design and rendering. It reports sales in its Professional Visualization business, which grew 108% annually to $644 million. The company said workstation chip sales and hybrid working drove the growth.
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