Nvidia (NVDA) announced its third quarter earnings after the bell on Wednesday, beating investigators’ expectations for the top and bottom lines as its pay rose 50% year over year. To say that Nvidia had an extraordinary argument in 2021 would be putting it mildly. The company’s stock is up 125% since the start of the year, and it’s new to see new hardware and software appearing related to its Metaverse platform called Omniverse, its self-driving vehicle propulsion systems, and its artificial awareness work. The company’s share rose more than 3% according to the report.
Revenue: $ 7.1 billion versus $ 6.81 billion expected.
“The third quarter was excellent with record earnings,” said Jensen Huang, CEO of Nvidia, in a statement. “The demand for NVIDIA AI is growing, driven by hyperscale and cloud scale-out, and adoption by more than 25,000 companies. NVIDIA RTX has reinvented computer graphics with ray tracing and AI and is the ideal upgrade for the large, growing market of gamers and developers, as well as designers and professionals building home offices. “
Earnings per share: $ 1.17 versus an expected $ 1.11.
Data Center Revenue: $ 2.94 billion versus an expected $ 2.69 billion.
Gaming Revenue: $ 3.22 billion versus $ 3.18 billion expected.
But like other chip manufacturers, Nvidia was also stung by the shortage of chips. The company’s consumer graphics cards are incredibly scarce, with both crypto miners and resellers using bots grabbing as many cards as possible.
As a result, cards sell for hundreds of dollars above their manufacturer’s suggested retail price. Cards that should cost $ 599 cost well over $ 1,000, and finding any cards close to their original price is a pointless endeavor.
Nvidia still makes the bulk of its money from its gaming business, but the company’s data center arm has become increasingly important to the company’s future. The company leads the way in large-scale artificial intelligence systems thanks to the parallel processing power of its cards and will introduce its own CPU to ensure its data centers don’t have to use competing processors. But not everything is going well for Nvidia. The company’s $ 40 billion plan to purchase chip designer ARM has hit a regulatory wall in the UK where it is under scrutiny. It also needs to go through US and China regulators before it’s finalized.
However, Huang told Yahoo Finance Live that the company is ready to move forward with or without ARM. And that it will still be successful. “We would be doing very well, just like we are doing today,” said Huang. “So we support all CPUs. We love the blooming of CPUs and the reason for that is because the CPU is the first chip in the system. The operating system boots up. And wherever there are CPUs, there are opportunities for accelerated computing. “
Summary of the news:
- Nvidia clearly exceeds profit expectations thanks to strong game and data center sales
- Check out all the news and articles on the latest business news.
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