Shares Of NVIDIA Skyrocket After Hours On Blowout Earnings And Strong GPU Demand
GPU juggernaut NVIDIA is flying high after announcing blowout financial results for the previous quarter, and so are shares of NVDA in after hours trading as a result. Hot on the heels of reporting a record $2.91 billion in revenue during the fourth quarter, investors responded by sending shares of company up more than 12 percent, offsetting the 5 percent drop in share price for the day before the closing bell today, in what was otherwise another bloodbath on Wall Street.
"We achieved another record quarter, capping an excellent year," said Jensen Huang, founder and chief executive officer of NVIDIA. "In a powerful sign of our progress, attendees at NVIDIA’s GPU Technology Conferences reached 22,000, up tenfold in five years, as software developers working in AI, self-driving cars, and a broad range of other fields continued to discover the acceleration and money-saving benefits of our GPU computing platform."
The strong quarter capped off a record year for NVIDIA, in which the company raked in $9.71 billion in revenue, up a staggering a 41 percent from the previous year. After paying the bills, NVIDIA came away with a profit of $3.05 billion for the full year, and $1.12 billion for the quarter.
Graphics chips for gaming continue to be NVIDIA's bread and butter. Out of the $2.46 billion NVIDIA collected in GPU revenue during the last quarter, $1.74 billion was related to gaming, which accounts for discrete graphics cards and custom chips found in game consoles. NVIDIA did not divulge exactly how big of an impact cryptocurrency mining had on its GPU sales, though the company's CFO did say that it "accounted for a higher percentage of revenue than the previous quarter," adding that it "exceeded expectations."
NVIDIA also saw impressive growth in its datacenter efforts, which grew 105 percent year-over-year to a $606 million business. The company also saw gains in every other division, including professional virtualization (up 13 percent to $254 million), OEM and IP (up 2 percent to $180 million), and automotive (up 3 percent to $132 million).
"Industries around the world are racing to incorporate AI. Virtually every internet and cloud service provider has embraced our Volta GPUs. Hundreds of transportation companies are using our NVIDIA DRIVE platform. From manufacturing and healthcare to smart cities, innovators are using our platform to invent the future," Huang added.
Looking ahead, NVIDIA expects to keep the momentum going, saying it expects to collect $2.9 billion in the current quarter, plus or minus 2 percent.