Nvidia (NVDA) earnings for the primary quarter of 2022

Jen-Hsun Huang, CEO of Nvidia

David Paul Morris | Bloomberg | Getty Images

Nvidia reported first quarter results for fiscal year 2022 on Wednesday, with revenue up 84% year over year.

Both earnings and sales exceeded Wall Street’s expectations, but stocks were largely unchanged in expanded trading.

This is how the chip manufacturer behaved in comparison to the estimates of the refinitive consensus:

  • Revenue: $ 5.66 billion versus an estimated $ 5.41 billion
  • Merits: $ 3.66 adjusted versus an estimated $ 3.28 per share

The profit period ended on May 2nd.

Nvidia’s profits come at a time of sustained massive growth in its business due to a global semiconductor shortage. Nvidia expects sales of 6.30 billion US dollars for the current quarter, an increase of 62% over the previous year.

The graphics processors (GPUs) manufactured by Nvidia are essential for PC gaming, artificial intelligence and cryptocurrency mining.

The graphics segment, which consists primarily of graphics cards, grew 81% to $ 3.45 billion in revenue. Broken down by market platform rather than reportable segments, Nvidia said its gaming products grew 106% on an annualized basis to $ 2.76 billion.

Colette Kress, CFO of Nvidia, said gamers and students are behind the increased demand for GPUs and that the current upgrade cycle is expected to continue to be strong as the year progresses. Consumer sales of GeForce graphics processors led to an increase in sales in the gaming division alongside chips being sold to game console manufacturers.

The computing and networking segment, which includes data center chips, grew 88% to $ 2.21 billion. According to Nvidia, sales were boosted in part by Mellanox, a data center company acquired last year, as well as increased demand for graphics processors in servers.

Nvidia has also had supply problems for months. The consumer graphics cards are constantly selling out worldwide, and Nvidia has added new software to make them less attractive to cryptocurrency miners to reserve the offer for other buyers.

Nvidia said Wednesday that it expected graphics cards to remain tight in the second half of the year, but that its new line of dedicated cryptocurrency chips called CMP could help solve the problem.

“CMP delivers better yields, and the production of these products does not affect the supply of GeForce. This protects the supply of the players,” said Jensen Huang, CEO of Nvidia, in an interview with analysts.

Nvidia said Wednesday that it believed cryptocurrency miners were partially responsible for the increased revenue, but “it’s hard to determine to what extent.”

Nvidia said the CMP processors it sells specifically for cryptocurrency miners had sales of $ 155 million. In the current quarter Nvidia expects CMP sales of around 400 million US dollars, said Kress.

Nvidia announced last year that it plans to buy ARM, a core processor technology company, for $ 40 billion. Kress said the transaction is on track to close in 2022.

Last week, Nvidia announced that it plans to split its stock 4: 1 pending shareholder approval.

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