Nvidia (NVDA) reported its fiscal earnings in Q2 2022 after belOn Wednesday, we beat Wall Street expectations in light of the continued growth in the company’s important data center and gaming segments, which brought revenue up to 68% compared to the previous year in the quarter.
Here are the key figures from the report in relation to what analysts expected, as compiled by Bloomberg.
Turnover: $ 6.51 billion against $ 6.33 billion expected
EPS: $ 1.04 vs. $ 1.01 expected
Datacenter: $ 2.37 billion against $ 2.28 billion expected
Game: $ 3.06 billion against $ 2.96 billion expected
The company’s stock fell more than 1% after the report.
Shares have been on a tear over the past three months and have jumped 48% compared to the S&P 500’s 18%. The vast majority of the company’s revenue comes from its data center features and graphics cards, both of which have experienced massive interest from buyers.
And Oppenheimer’s Rick Schafer sees it continue into Nvidia’s second half of the company’s financial year.
“Despite restrictions, we see gaming as a leader [fiscal Q2] growth with continued momentum in 2H led by new game titles, back-to-school and holidays, ”Schafer wrote in an analyst note prior to Nvidia’s earnings. “[Data center] demand is accelerating [second half] with large-scale costs, and it increasingly favors workloads / services for neural networks. ”
And while the average selling price of Nvidia’s cards may fall as cheaper devices become more readily available, BofA Global Research’s Vivek Arya says the company’s gaming segment will continue its double-digit growth in fiscal year 2022.
Still, Nvidia faces two potential overhangs: a decline in interest in card sales due to a possible slowdown in crypto-mining activities and the chance that its acquisition of ARM will fall through.
The $ 40 billion ARM acquisition announced by Nvidia in September 2020 is still dependent on approval from global regulators and is still up in the air. According to Bloomberg, UK regulators are considering blocking the move for national security reasons.
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