Record-breaking data center, best street view of Nvidia revenue with gaming revenue, but supply constraints remain a concern

The Nvidia Corp. share price rose in an extended session Wednesday after chipmaker profits beat Wall Street estimates, and how the company’s outlook reflects ongoing chip supply constraints around the world. I took.

After a few hours, stocks initially oscillated between small gains and losses rose more than 2% to end the extended session. This is due to a 2.2% reduction in regular sessions, ending at $ 190.40. Stock closed in Split adjustment On July 6, it hit a record high of $ 206.99. All stocks and per share figures are shown as adjusted split.

Chipmakers based in Santa Clara, Calif., Are expected to generate $ 6.66 billion to $ 6.94 billion in revenue in the third quarter or current quarter, but FactSet polled analysts an average of $ 6.57 billion. Anticipate the benefits. On the conference call, the conversation quickly became about how this prospect was affected by supply constraints.

except Cryptocurrency mining processorOr, CMP is aiming to deflect mining demand from GPUs designed for gamers, and Nvidia CFO Colette Kress said over the phone that revenues would increase by more than $ 500 million in a row. I expect it. CMP generated revenue of $ 266 million in the second quarter and is expected to generate minimal profit in the third quarter.

“Most of this continued revenue growth will come from the data center,” Kress said. “We expect the game to gradually increase, but keep in mind that the supply is still limited.”

“Therefore, the third quarter results are not in-game seasonal, and this is the offering that we believe will be available in the third quarter,” Kress said.

“We have sufficient supply to meet our business growth plan for the second half of the year,” Nvidia CEO Jen Sung Hwan said on the phone. “We look forward to realizing our growth plan for next year. “

“In the meantime, we’ve got a pretty big long-term sourcing commitment as we expand into all of these various market initiatives that we’ve put in place,” Huang said. “So I expect to see a supply-constrained environment for most of the year, which is what I’m guessing at the moment.”

Nvidia’s second-quarter net income was $ 2.37 billion, or 94 cents per share, compared to $ 622 million, or 25 cents per share, in the same quarter last year. Adjusted earnings, excluding stock-based compensation and other items, were $ 1.04 per share, compared to 55 cents in the last year quarter.

Revenue hit a record $ 6.51 billion, up 68% from $ 3.87 billion in the previous year quarter.

Analysts estimated adjusted earnings of $ 1.02 per share for $ 6.33 billion in profit. In May, Nvidia forecast revenues of $ 6.17 billion to $ 6.43 billion.

Analysts polled by FactSet predicted that Nvidia’s gaming revenue would rise to $ 2.98 billion, while second-quarter gaming revenue was up 85% to $ 3.05 billion, the most high never recorded in the previous quarter. It exceeded $ 2.76 billion.

On the data center side, revenue grew 35% year-on-year to a record $ 2.37 billion, but analysts are forecasting revenue of $ 2.27 billion.

Nvidia has also faced headwinds in its plans Microprocessor design company Arm Ltd. for $ 40 billion From SoftBank Group Corp.
9984,
-3.60%
..
Earlier this month, rumors were circulating that the deal could be blocked by UK regulators. Arm is based in Cambridge, England.

“Some gun licensees have expressed concern and are opposed to the deal, and discussions with regulators are taking longer than expected, but regulation,” Cress said in a prepared statement. We are in the process. “We are confident in this transaction and regulators should be aware of the benefits of the acquisition for Arm, its licensees and the industry.”

Chip industry continues to deliver strong profits amid supply shortage, Advanced Micro Devices Inc.
AMD,
+ 0.92%

Gain more market share in the data center space of Intel Corp.
INTC,
-0.82%
..

Nvidia’s share has climbed 58% in the past 12 months, but the PHLX Semiconductor index
SOX,
+ 0.64%

It increased by 47%. On the other hand, the two S & P500 indices
SPX,
+ 0.81%

Nasdaq Composite Index
COMP,
+ 1.19%

It is up 31%.


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