Nvidia results, forecast beat estimates across the board as China sales slow ‘significantly’

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Nvidia ( NVDA ) reported its fourth-quarter earnings after the bell on Wednesday, beating analysts’ expectations on both the top and bottom lines.

For the quarter, Nvidia reported adjusted earnings per share (EPS) of $5.16 on revenue of $22.1 billion. Analysts were expecting EPS of $4.60 on revenue of $20.4 billion. That’s a huge jump from the same period last quarter when Nvidia reported EPS of $0.88 on $6.1 billion a year ago. To put a finer point on Nvidia’s performance, the company reported revenue of $27 billion for all of 2022.

The company also beat analysts’ expectations for the first quarter, saying it expected revenue of $24 billion, plus or minus 2%. Wall Street had expected $21.9 billion for the quarter.

Shares of Nvidia rose more than 5% after the report.

“High-speed computing and creative AI have hit a tipping point. Demand is growing across companies, industries and countries around the world,” Nvidia CEO Jensen Huang said in a statement after the report.

“Our data center platform is powered by increasingly diverse drivers – data processing, training, and major cloud service providers and GPU specialists, as well as enterprise software and consumer Internet companies. Vertical industries – whose The leadership spans auto, financial services and healthcare – now at the multi-billion dollar level,” he added.

Despite the defeat across the board, Nvidia made at least one negative comment in its report with CFO Colette Kress warning that data center revenue from China in Q4 was “significantly” due to US licensing requirements. “There has been a decline. The US has blacklisted the sale of certain Nvidia chips to China over concerns that they could be used for military applications.

Nvidia’s all-important data center business, which includes sales of its high-powered GPUs for AI applications, saw revenue of $18.4 billion, beating analysts’ expectations of $17.2 billion. The company reported revenue of $3.62 billion in the same quarter last year.

While Nvidia’s data center segment is sailing, its gaming business is still an important part of the company. The division’s revenue reached $2.9 billion. Investors expected revenue of $2.7 billion, up from $1.8 billion last year.

Nvidia’s stock price has soared more than 200% in the past 12 months, handily outpacing rivals AMD ( AMD ) and Intel ( INTC ), thanks to the world’s leading AI chip maker. Is.

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Daniel Hawley is the Tech Editor at Yahoo Finance. He has been covering the tech industry since 2011. You can follow him on Twitter. @DanielHowley.

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