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Nvidia (NVDA) earnings Q1 2023

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The figure in this photo shows the stock trading graph of Nvidia Corporation displayed on the screen of a smartphone.

Rafael Enrique | Sopa Images | Light Rocket | Getty Images

Nvidia CFO Collet Cress said the company is dealing with a difficult macroeconomic environment and will slow down hiring and manage costs. report Wednesday’s first quarter earnings.

Nvidia exceeded analysts’ sales and earnings expectations, but at some point long-term trading stocks fell more than 10% after chipmakers lightened their outlook for the quarter.

Here’s a comparison of Nvidia’s and Refinitiv’s consensus estimates for the quarter up to May 1.

  • EPS: $ 1.36, adjusted, vs. $ 1.29 forecast
  • Revenue: $ 8.29 billion compared to the expected $ 8.11 billion

Nvidia Said Under analysts’ expectations of $ 8.54 billion, this quarter’s revenue will be approximately $ 8.1 billion. Nvidia stocks have fallen by more than 43% so far in 2022 as investors avoid fast-growing stocks in favor of safe betting during periods of high inflation and macroeconomic uncertainty. increase.

Nvidia CEO Jensen Huang said in a statement that the company is facing a “difficult macro environment.” The company’s operating expenses were $ 1.6 billion on a non-GAAP basis, up 35% year-over-year.

Nvidia said revenue for the quarter would be $ 500 million less than it would have been without the Russian War in Ukraine and the blockade of Covid in China.

However, Nvidia continues to generate significant revenue, and demand for graphics processors widely used in advanced gaming and artificial intelligence in the cloud remains strong. Total revenue increased 46% year-over-year, and both the data center and gaming core businesses grew in the quarter.

Nvidia’s data center business, which sells chips to cloud computing companies and businesses, is the company’s core game business, which sells graphic cards for playing advanced 3D games, with an annual increase of 83% to $ 3.75 billion. It is up 31% annually to over $ 3.62 billion.

According to Nvidia, the growth of the game was driven by graphics cards for laptops and chips for game consoles. Nvidia manufactures the chips that are at the heart of the Nintendo Switch.

According to the company, inventory of gaming graphics chips, which has been difficult to find at retail prices for the past year, has “normalized”, suggesting that the shortage is beginning to disappear. Nvidia said it expects game revenues to decline “in teens” this quarter.

The company’s performance in small business areas was mixed. Workstation professional visualization was up 67% annually to $ 622 million, while the company’s automotive business was down 10% year-on-year to $ 138 million.

Earlier this month, Nvidia Reconciliation reached Cooperation with the SEC on 2017 disclosure of how cryptocurrency mining has driven the company’s growth. Nvidia said its cryptocurrency-specific product, CMP, reduced other earnings by 52% due to “nominal” earnings during the quarter.

Nvidia said the board has approved an additional $ 15 billion share buyback by the end of next year. We spent $ 2.1 billion on share buybacks and dividends in the first quarter.

Earlier this year, Nvidia ended a major purchase of chip technology company Arm. Nvidia said it paid a $ 1.35 billion termination fee. This had a negative impact of 52 cents per share on a GAAP basis.

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