Nvidia (NVDA) results for the 4th quarter of 2022

Nvidia co-founder and CEO Jensen Huang attends an event during the annual Computex Computer Expo in Taipei.

Tyrone Siu | Reuters

Nvidia on Wednesday released fourth-quarter earnings and sales that beat analysts’ expectations and provided a strong outlook for the current quarter. The stock fell more than 1% in extended trading.

Here’s how the chipmaker fared against Refinitiv consensus expectations for the quarter ending January:

  • EPS: $1.32, adjusted, vs. $1.22 expected, up 69% year-over-year.
  • Income: $7.64 billion, versus $7.42 billion expected, up 53% year-over-year.

Nvidia said it expects to report $8.10 billion in the first quarter, higher than analysts’ expectations of $7.29 billion. Nvidia CEO Jensen Huang said in a statement that the company is seeing “exceptional” demand as its chips are useful for artificial intelligence and other intensive applications.

Nvidia was on a big streak in 2021, but it’s down about 10% year-to-date as investors seek safer investments in an inflationary environment.

Nvidia has been boosted as cloud providers and enterprises turn to the type of graphics processors that Nvidia manufactures for artificial intelligence applications such as voice recognition and recommendations. Nvidia earned $3.26 billion in revenue for its data center business, up 71% annually.

During the quarter, Nvidia announced that Meta, Facebook’s parent company, would use its chips for research into artificial intelligence, for example.

Gaming remains Nvidia’s biggest market, as its latest GeForce graphics processors are ideal for playing advanced computer games. Gaming business grew 37% year-over-year to $3.42 billion, driven by GeForce sales, the company said.

Nvidia’s chips are also useful for professionals who need them for applications such as computer-aided design, rendering, and artificial intelligence. He reports those sales in his professional viewing business, which grew 109% annually to $643 million. The company said growth was driven by sales of workstation chips and hybrid work.

However, Nvidia’s automotive business fell 14% to $125 million. This is not a primary focus for the company, but represents a growth market for its chips. Nvidia said supply constraints from automakers were one of the reasons for its auto sales slump.

Nvidia said almost all of its GPUs now come with software that prevents them from being used to mine cryptocurrency and that miners can purchase specialized mining processors instead. It said it sold $550 million of crypto-specific cards in its 2022 fiscal year, and just $24 million in the fourth quarter.

Nvidia was in talks to buy Arm, a chip technology company, from SoftBank, but the company announced earlier this month that the deal had collapsed under regulatory scrutiny.

Nvidia said it expects a $1.36 billion operating expense charge due to the failure of the Arm deal.


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