Nvidia (NVDA) has exceeded sky-high expectations and reported financial results that beat Wall Street forecasts.
The chipmaker announced earnings per share (EPS) of $5.16 U.S. compared to $4.64 U.S. that had been expected among analysts.
Revenue in what was the company’s fiscal fourth quarter totaled $22.10 billion U.S. versus $20.62 billion U.S. that was anticipated.
Nvidia’s sales were up 265% from a year earlier and its profits grew 769% year over year.
The company’s stock is up 14% in premarket trading on news of the earnings beat and company’s growth.
Nvidia attributed the strong results to red hot demand for its microchips, or graphics processing units (GPUs), that are used to power artificial intelligence (AI) applications and models.
Looking ahead, Nvidia forecast sales in the current quarter of $24 billion U.S. Analysts polled by LSEG were expecting sales of $22.17 billion U.S.
Nvidia’s AI chip sales are reported as part of its Data Centre business, which now comprises most of the company’s revenue.
Data centre sales in fiscal Q4 increased 409% from a year ago to $18.40 billion U.S., though Nvidia flagged that data centre revenue growth would have been higher if not for U.S. restrictions on exporting AI technology to China.
The company’s gaming business, which includes graphics cards for laptops and personal computers (PCs), was up 56% year over year to $2.87 billion U.S.
Graphics cards for video games used to be Nvidia’s main business before its AI microchips began to take off.
Nvidia’s smaller businesses showed slower or declining growth. Sales in the company’s automotive business fell 4% to $281 million U.S., while sales of its cryptocurrency chips rose 7% to $90 million U.S.
Prior to today (Feb. 22), the stock of Nvidia had increased 225% over the last 12 months to trade at $674.72 U.S. per share.
Tech Insider
