Nvidia Corporation provided a solid first-quarter fiscal 2023 outlook following upbeat quarterly earnings boosted by the broad chip demand.
The American technology company expects its current-quarter revenue to come at $8.10 billion, representing a 42.00% year-over-year growth.
At the same time, this guidance surpassed the analysts’ estimate of $7.29 billion.
Nvidia CEO Jensen Huang stated that the firm foresees an exceptional demand ahead this year.
He further explained that the business boosted as cloud providers and enterprises turned to its graphics processors.
Subsequently, artificial intelligence applications like speech recognition and recommendations widely use chips.
For instance, Nvidia announced that Facebook parent Meta would utilize its products for AI research.
In addition, Huang noted that supply constraints notably ease. This positive statement indicates a substantial increase in the company’s supply in the second half of 2022.
The world’s largest graphic and artificial intelligence chipmaker also gave positive fourth-quarter results.
In the October to December period, the firm reported revenue of a record $7.64 billion, above the market estimate of $7.29 billion.
This figure also represented a 53.00% year-over-year increase from the $5.00 billion in the prior year.
At the same time, its record fiscal-year revenue edged up 61.00% to $26.91 billion. It came in higher than the expected $26.69 billion and the previous $16.68 billion result.
Subsequently, it revealed an annual increase of 71.00% to $3.26 billion in sales from its data center business, above the anticipated $3.30 billion.
Then, its adjusted EPS elevated 69.00% to $1.32 per share from a year earlier, beyond the market projection of $1.22.
Recently, Nvidia also made the headlines after its acquisition of Arm Ltd. fell apart under regulatory scrutiny.
Nvidia Benefits from Metaverse Ventures
Moreover, Nvidia’s revenue significantly rose on the Metaverse’s increasing focus.
The virtual world opens the door for additional sources of demand for the company’s data center chips.
Regardless, Gaming is still Nvidia’s largest market, whereas its latest GeForce graphics processors are ideal for advanced computer games.
Correspondingly, its gaming segment edged up 37.00% year-over-year to $3.42 billion, bolstered by GeForce sales.
Businesses also used Nvidia’s chips for applications like computer-assisted design and rendering.
Its Professional Visualization business strengthened 109.00% annually to $643.00 million.
Consequently, the firm stated that the workstation chip sales and hybrid working mainly drove profit.
However, concerns about Nvidia’s exposure to the crypto market sent shares to a slump of 2.68% to $258.01 in Wednesday’s after-hours trading.
