Nvidia sales hit record highs again amid a chip shortage, and earnings outlook suggests more to come –

Nvidia sales hit record highs again amid a chip shortage, and earnings outlook suggests more to come – fr

Nvidia Corp. broke several quarterly sales records and forecasts revenue growth of up to $ 1 billion above Wall Street estimates for the current quarter on Wednesday, as the games chips and data center company faces to continued demand in a context of a shortage of chips.

For the second fiscal quarter or in progress, Nvidia NVDA,
+ 0,33%
forecast revenue of $ 6.17 billion to $ 6.43 billion, while analysts polled by FactSet forecast revenue of $ 5.47 billion on average.

“In our data center business, our product line couldn’t be better right now,” said Colette Kress, chief financial officer of Nvidia, when analysts invited her on a conference call to explain the outlook. . “We have a strong overall portfolio, both for training and for inference, and we are seeing strong demand in our hyperscales and verticals.”

“We’ve made a deliberate effort on the outlook for the game to provide our players with the cards they would like given the high demand we’re seeing,” Kress said. “It will also support the sequential growth that we are receiving.”

In the first fiscal quarter, game sales rose 106% to a record high of $ 2.76 billion, surpassing the previous high of $ 2.5 billion, while analysts polled by FactSet expected to Nvidia game sales of $ 2.72 billion.

“We plan to remain limited by supply into the second half of the year,” Kress said.

To address this shortage, Nvidia has worked to deter cryptocurrency miners from using its gaming chips for mining rigs. At the start of the first quarter, the company launched a chip designed for mining cryptocurrency; sales of the so-called CMP chips amounted to 155 million dollars.

More recently, Nvidia said it will change the performance of its new gaming cards to specifically make them less appealing to minors. While cryptocurrencies like BTCUSD bitcoin,
+ 0,87%
et ethereum ETHUSD,
+ 1,82%
are off about 40% from their recent highs, they are still trading at breathtaking gains from a year ago.

Overall, Nvidia reported first quarter net income of $ 1.91 billion, or $ 3.03 per share, compared to $ 917 million, or $ 1.47 per share, for the same period of l ‘last year. Adjusted earnings, which exclude stock-based compensation expense and other items, was $ 3.66 per share, compared to $ 1.80 per share for the same period last year.

Revenue soared to a record $ 5.66 billion, up 84% from $ 3.08 billion in the quarter last year. In April, Nvidia beat its forecast by $ 5.3 billion, compared to February, when the company offered a range of $ 5.19 billion to $ 5.41 billion. In the previous quarter, which included holiday sales, sales topped $ 5 billion for the first time, even as global chip shortages and high demand hampered sales across the industry.

Lis: Semiconductor shortage is here to stay, but it will affect chipmakers differently

Analysts had estimated adjusted earnings of $ 3.29 per share on revenue of $ 5.4 billion. Stocks fluctuated between slight gains and after-hour declines, and fell as much as 2% during the conference call. This follows a 0.3% rise in the regular session to close at $ 628.

On the data center side, sales jumped 79% to a record $ 2.05 billion from a year earlier, while analysts forecast sales of $ 2 billion.

“We are seeing strength at all levels in data centers and we are seeing increasing demand,” General Manager Jensen Huang said on the conference call. “From scientific computing, both physical and life sciences, classic data analysis and machine learning, cloud computing and cloud graphics – which is becoming more and more important due to remote work – and especially AI, both for training and for inference for the classic machine-learning models. “

In addition, Nvidia’s Kress informed investors of the company’s planned acquisition of microprocessor design firm Arm Ltd. for $ 40 billion from Softbank Group Corp. 9984,
this was announced in September.

“On our acquisition of Arm, we are making steady progress in working with regulators in key regions,” said Kress. “We remain on track to close the transaction within the initial deadline of early 2022.”

Lis: Global chip shortage set to last into next year, and that’s good news for semiconductor stocks

Amid supply shortages, the chip industry has consistently delivered strong profits this season, with Advanced Micro Devices Inc. AMD,
+ 0,62%
doing better in the data center space than Intel Corp. INTC,
+ 0,09%,
tandis que Qualcomm Inc. QCOM;
exceeded Street’s expectations after a series of downgrades.

Over the past 12 months, shares of Nvidia have climbed 80%, while the PHLX Semiconductor SOX index,
+ 0,20%
won 73%. Meanwhile, the S&P 500 SPX Index,
+ 0,19%
increased by 40% and the Nasdaq Composite Index COMP,
+ 0,59%
gained 47%. The company recently announced its first stock split in 14 years after massive gains. Shares of Nvidia last closed at an all-time high on April 15 at $ 645.49.


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