Nvidia Corp. reported on Wednesday that quarterly sales surpassed $ 5 billion for the first time in the fourth quarter, as demand for Christmas game chips and renewed interest in cryptocurrency mining competed with supply shortages. Game sales rose 67% to a company record of $ 2.5 billion, on demand for game cards that CEO Jensen Huang called “incredible.” Analysts surveyed by FactSet had expected Nvidia game sales of $ 2.36 billion.
Meanwhile, the game card supply shortage is likely to continue into the future, Colette Kress, Nvidia’s chief financial officer, said on Wednesday’s conference call. “It has been difficult to keep the entire 30 series line in stock and we came out of the fourth quarter with channel inventories even lower than when we started,” Kress said on the call. “Although we are increasing supply, channel inventories are likely to remain low during the first quarter. Nvidia announced last week that it hopes to alleviate the gaming card shortage by launching a chip designed for cryptocurrency mining, called the CM. Cryptocurrencies like bitcoin BTCUSD, + 1.76%, and ethereum ETHUSD, + 1.52% have soared to records over the past year, and the demand from miners to catch that rush has eaten up gaming supplies. In the call, Kress said that the company expects around $ 50 million from CMP sales in the first quarter and that the company plans to break crypto-related sales in the future. On the data center side, sales nearly doubled to $ 1.9 billion from the prior year period, while analysts were expecting sales of $ 1.85 billion. “Our A100 universal AI data center GPUs are growing strongly in cloud service providers and vertical industries,” Huang said. “Thousands of companies around the world are applying Nvidia AI to create cloud-connected products with artificial intelligence services that will transform the world’s largest industries. We are seeing the moment of smartphones for all industries. “Huang explained that more and more products are becoming smartphones, in other words, products that require communicating with artificial intelligence services running in data centers to function. optimally. “You will see smart lawn mowers, smart tractors, smart air conditioners, smart elevators, smart buildings, smart warehouses, robotic retail stores, the whole store – the entire retail store is like a robot,” Huang said. “And they will all have autonomous capability, they will all be powered by AI. “Read: The global chip shortage is expected to last into next year, and that’s good news for semiconductor stocks. For the first quarter, Nvidia forecast revenue from $ 5.19 billion to $ 5.41 billion, while analysts had forecast revenue of $ 4.49 billion is on average. Nvidia NVDA, + 2.52% reported fourth quarter net income of $ 1.46 billion, or $ 2.31 per share, compared to $ 950 million, or $ 1.53 per share, in the same period last year. Adjusted earnings, which exclude share-based compensation expenses and other items, were $ 3.10 per share, compared to $ 1.89 per share in the prior year period. Revenue topped $ 5 billion for the first time, by about $ 3 million, up 61% from $ 3.11 billion in the prior-year quarter, during a holiday season when players had a hard time finding cards. graphics, much less cards close to the suggested retail price. , as cryptocurrency prices soared. Just three months ago, Nvidia’s sales set a record, surpassing $ 4 billion in quarterly sales for the first time. Analysts surveyed by FactSet had estimated $ 2.81 per revenue share of $ 4.82 billion, based on Nvidia’s revenue forecast of $ 4.7 billion to $ 4.9 billion. The shares, which had risen about 2% at the start of the call, were down about 3% after hours. That followed a 2.5% rise in the regular session to close at $ 579.96. Over the past 12 months, Nvidia shares have recovered 112%, while the PHLX Semiconductor Index SOX, + 3.24% has gained 77%. Meanwhile, the S&P 500 SPX Index, + 1.14%, rose 22%, and the Nasdaq Composite Index COMP, + 0.99% gained 47%. Nvidia shares closed at a record $ 613.21 on February 16.