Nvidia (NVDA) earnings Q3 2021

Nvidia beat analyst expectations on both earnings and revenue in its fiscal fourth quarter, but the company’s expanded stock saw the stock fall more than 3% and said revenue from its data center segment would decline sequentially in the current quarter.

How did Nvidia perform in the quarter ending in October:

  • Earnings: $ 2.91 per share, adjusted, vs. $ 2.57 per share, according to analysts, Refinitive.
  • Revenue: $ 4.73 billion as expected by analysts, vs. $ 4.41 billion according to Refinitive.

Analysts expected a larger quarter from the Santa Clara chipmaker driven by the sale of its graphics processing unit chips, which are increasingly important to both game and artificial intelligence developers who require processing power.

Nvidia said it set the company’s record for revenue at 57% and quarterly profit from the same period last year.

Nvidia’s large quarter was driven by its compute and networking segment, up 146% from a year earlier to $ 1.94 billion. It was also boosted by the company’s graphics segment, up 25% from last year’s $ 2.79 billion. In addition to reporting revenue in terms of those two segments, Nvidia also reveals the revenue by which the products are marketed.

Nvidia CEO Jensen Huang said in August that the company was expecting a strong half of the year in its gaming division. During the quarter, Nvidia revealed a new technology based on its new graphics line, called Ampere, and interest was strong. One of the new models, the GeForce RTX 3080, went on sale in September and sold out immediately.

Revenue in the gaming market was up 37% from the previous year to $ 2.27 billion, which the company called a record and attributed the sales of graphics cards to computer and console manufacturers, and that desktop sales from the launch of its new RTX graphics card Benefited

On Wednesday, the company said that both its gaming and data center divisions had been promoted during the Kovid-19 epidemic because customers needed computers to work and play from home.

Last quarter, Nvidia’s data center line item overtook gaming revenue for the first time. This quarter, Nvidia reported $ 1.9 billion in sales in the data center market behind the gaming center, although it grew 162% from the same period last year, driven by sales of Ampere graphics chips. Nvidia also said on Wednesday that the purchase of Melanox, which closed earlier this year, contributed 13% to the company’s total revenue and about a third of data center revenue.

Nvidia said in a call with analysts that it expects its data center revenue to decline in the current quarter, partly due to a Chinese customer not purchasing Melanox networking products.

In September, Nvidia planned to buy ARM from SoftBank for $ 40 billion, in a move seen as having significant implications for the semiconductor industry. ARM has developed a technology widely used in the industry to develop low-power chips for mobile devices and supply the technology to most of Nvidia’s competitors. Nvidia said on Wednesday that it expected to close the ARM acquisition in the first quarter of 2022.

Nvidia said it expected revenue of $ 4.8 billion in its fiscal fourth quarter, in line with analyst expectations of $ 4.42 billion in refinatives.

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