Again record revenues and jump in profit: high chip demand gets Nvidia going

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The high demand for its chips for data centers and computer games brings the semiconductor specialist Nvidia strong growth in sales and profit. In the past quarter, the US company’s revenue rose 50 percent year-on-year to $ 7.1 billion. That is also 9 percent more than in the previous quarter. Profits jumped 84 percent to $ 2.46 billion.

In the gaming area, where Nvidia’s graphics cards are popular, business grew to $ 3.22 billion, like Nvidia after the US stock market closed announced on Wednesday. That is 42 percent more than in the previous year, when Nvidia’s GeForce graphics cards could be sold splendidly, and also 5 percent more than in the previous quarter.

The business with chips for data centers grew year-on-year by 55 percent and compared to the previous quarter by 24 percent to 2.94 billion dollars. Nvidia’s technology is used, among other things, for applications with artificial intelligence.

Special “crypto mining processors” (CMPs) were less successful. In the previous quarter, when Nvidia was also able to report record revenues and a jump in profits due to the gaming boom, the CMPs were less in demand and the sales figures were lower than forecast. In the last three months, sales fell again by 60 percent, like CNBC reports.

Specifically, sales of the CMPs fell from $ 266 million in the previous quarter to $ 105 million most recently. With more than thirty times the revenue generated by traditional graphics cards, CMPs play a small role at Nvidia. For the current quarter Nvidia expects only “very negligible” sales of the CMPs.

While customers can only get graphics cards at inflated prices due to a lack of supply, Nvidia itself has so far been spared the major effects of the lack of chips. However, the cost of the supply chain increases, like Reuters reported. Accordingly, Nvidia puts outstanding inventory purchases and long-term delivery commitments at $ 6.9 billion. Last year, this was only calculated as $ 2.57 billion.

Recently, Nvidia also secured supplies with a one-time payment of $ 1.6 billion. Nvidia boss Jensen Huang said that he did not want to miss this opportunity. Nvidia have a lot of cash and generate a lot of money. That’s why he liked to spend the money to secure future growth.

The group then expects further growth in the current quarter. The sales forecast of 7.4 billion dollars exceeded the expectations of analysts, who had expected around 6.9 billion dollars. In after-hours trading, the share rose by around five percent at times, after Nvidia’s share price more than doubled over the course of the year. (with material from dpa) /


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