NVIDIA earns billions on demand for computer chips
Nvidia, the world’s leader in computer graphics cards, reported strong fourth-quarter earnings and sales On February 17. Despite beating analyst expectations however its stock fell about 2% in extended trading.
Its revenue was $7.64 billion (versus $7.42 billion expected), up 53% year-over-year. Its Earnings Per Share (EPS) was $1.32 versus $1.22 expected, a huge increase of 69% year-over-year.
The company stated in its latest report that it’s experiencing a huge demand for its computer chips which are being used in artificial intelligence and other tech applications.
Nvidia forecasts revenue of $8.1 billion in the first quarter of 2022, currently higher than analyst expectations of $7.29 billion.
An area of concern however is Nvidia’s automotive business; its vehicle division was down 14% to $125 million due to supply constraints hampering the production of vehicle-specific computer chips.
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