NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2022

The company’s quarterly report was stellar with products like NVIDIA AI and RTX GPUs out the door, for which demand is astronomically high in both areas. If NVIDIA is having issues with semiconductor resources, fxpcm it also didn’t show up here. The company is booming and it lead to the report that it had achieved record revenue and a solid earnings-per-share (EPS) this last quarter, beating consensus estimates on both.

You’re also seeing it in enterprises, for used in the discovery of DRIVE. There’s a digital biology revolution going on as the competition is stable. The large scale computing that we’re able to do now in AI, better understand biology and better understand chemistry and bringing both of those deals into the field of information sciences.

• And with NVIDIA’s scale and capabilities, Arm will make more embedded customers, while expanding into data center, IoT and other new markets.
• However, a long-feared downturn already plaguing consumer electronics starting in late 2022 has come for TSMC, too.
• You can find a reconciliation of these non-GAAP financial measures to GAAP financial measures in our CFO commentary, which is posted on our website.
• Those positive trends show no sign of ending soon.
• CMP revenue, which is recognized in OEM, was $266 million, lower than our original $400 million estimate on reduced mining profitability and we expect a minimal contribution from CMP going forward.

NVIDIA’s earnings are expected to grow from $9.54 per share to $14.93 per share in the next year, which is a 56.50% increase. GAAP earnings per diluted share for the quarter were $0.97, up 83 percent from a year ago and up 3 percent from the previous quarter. Non-GAAP earnings per diluted share were $1.17, up 60 percent from a year ago and up 13 percent from the previous quarter. NVIDIA today reported revenue for the second quarter ended July 31, 2022, of $6.70 billion, up 3% from a year ago and down 19% from the previous quarter. Nvidia also highlighted its new Omniverse Enterprise platform, which is built to provide virtual collaboration and real-time physically accurate simulation. Shares of Nvidia have outperformed the broader market over the past year.

The BlueField DPU design win pipeline is growing and the number of infrastructure softer partners is expanding, including Arista, Check Point, Juniper, [Inaudible] Networks and Red Hot. The latest top 500 list of supercomputers released this week at Supercomputing ’22 and has the highest ever number of NVIDIA-powered systems, including 72% of the total and 90% of new systems on the list. Moreover, NVIDIA powers 23 of the top 30 of the Green 500 list, demonstrating the energy efficiency of accelerated computing. NVIDIA paid quarterly cash dividends of $100 million in the third quarter.

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Looking further out, we have substantial design wins set to ramp that we expect will drive a major inflection in revenue in the coming years. This quarter, we announced several additional wins. Self-driving start-up AutoX unveiled its latest autonomous driving platform for robotaxis powered by NVIDIA DRIVE.

Automotive and Pro Vis are also expected to be up slightly quarter-over-quarter. And from a CMP perspective, we’ll probably just have minimal amounts in Q3. So, our Q3 results don’t have seasonality with some for gaming and are really about the supply that we believe we can have for Q3. And we have an opportunity to deploy AI services out of the edge.

And so I think the — a world wide beginning of our RTX transition. Meanwhile, computing graphics is expanded into so how to get a remote customer service job many different new markets. RTX we’ve known, we’ve always believed we’ll reinvent the way that people do design.

It is in the hardware that determines 800s capabilities. And so, it meets the clear test in letter and in spirit. We raised the concern about the $400 million of A100s because we were uncertain about whether we could execute. The introduction of A800 to our customers and through our supply chain in time.

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Nvidia missed on revenue but Refinitiv estimates didn’t change after the company warned on guidance and said it expected to report $6.7 billion in the quarter. At some point, perhaps in 2024, other parts of the chip market will also rebound. Things are looking ugly at TSMC, and there’s at least one more quarter of downturn left to go. NVIDIA reported a major quarter of record revenue on the back of AI and RTX products.

Ampere has been our fastest ramping gaming GPU architecture on Steam and the combination of Turing and Ampere RTX GPUs have only upgraded about 20% of our installed base. Nvidia is also working to ensure that it can still sell its high-end products in China. Nvidia began offering its new A800 chip in the country during Q3 as a replacement for the A100 chip, which the U.S. government said was too powerful to ship to China. The government fears China will use the technology for military applications.

Nvidia (NVDA) Q3 2023 Earnings Call Transcript

In an effort to address the needs of miners and direct GeForce to gamers, we increased the supply of cryptocurrency mining processors, or CMP, and introduced low hash rate GeForce GPUs with limited Ethereum mining capability. Over 80% of our Ampere architecture-based GeForce shipments in the quarter were both hash rate GPUs. The combination of crypto to gaming revenue is difficult to quantify.

The company has made significant gains in data centers, where cloud providers and big enterprises are turning to the kind of graphics processors made by Nvidia for artificial intelligence applications. Investors and others should note that we announce material financial information to our investors using our investor relations website, press releases, SEC filings and public conference calls and webcasts. The information we post through these social media channels may be deemed material.

But again, we are planning for all three of those different market platforms to grow just a little bit. Colette, I had a question on the commentary you gave on the sequentials. It kind of sounded like data center maybe had some China softness issues. In the documentation, you talked about that being a portion of inventory on hand plus some purchase obligations. And you also spoke in your prepared remarks that some of this was due to China data centers.

Nvidia Q3 FY2022 Earnings Report Recap

In July, Nvidia cut its guidance for the October quarter. Nvidia also warned in August that it would be hit by U.S. export controls that prevent some fast artificial intelligence chips from being sold to Chinese companies. In November, coinberry review it revealed a new chip that is designed to meet the U.S. export rules. Nvidia’s graphics chips were in such high demand during the pandemic that they were selling for hundreds of dollars more than their retail prices.

That was a significant acceleration from the previous year’s growth of 1.7% and it was the fastest pace since FY 2018. Growth has so far decelerated through the first half of FY 2022, slowing to a pace of 79.5% YOY in the first quarter and again to 35.1% YOY in the second. However, analysts are expecting growth to reaccelerate in Q3 FY 2022, forecasting revenue for the data center segment to grow 43.2% YOY. For full-year FY 2022, analysts expect the segment’s revenue to expand 48.5%, significantly slower than the previous year’s rapid pace. During the third quarter, NVIDIA announced a definitive agreement to acquire Arm Limited from SoftBank Capital Limited and SVF Holdco (UK) Limited in a transaction valued at $40 billion. The transaction will combine NVIDIA’s leading AI computing platform with Arm’s vast ecosystem to create the premier computing company for the age of AI.

NVDA Earnings Date and Information

And there’s not a software that goes into that software-defined data center run on today’s GPUs. It’s the networking stack, the storage stack and now which has zero trust, the securities stack. All of that is putting enormous pressure on the available computing capacity for applications, which is ultimately what data centers are designed to do. GAAP and non-GAAP gross margins are expected to be 65.2% and 67% respectively, plus or minus 30 basis points. GAAP and non-GAAP operating expenses are expected to be approximately $1.96 billion and $1.37 billion respectively. GAAP and non-GAAP other income and expenses are both expected to be an expense of approximately $60 million, excluding gains and losses on equity securities.