Nvidia stock falls on light guidance

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  • Nvidia reported fiscal first-quarter earnings on Wednesday.
  • The stock dropped in extended trading after the chipmaker gave a lighter forecast for the current quarter.

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Nvidia reported fiscal first-quarter earnings on Wednesday, beating analysts’ expectations for sales and earnings, but the stock fell more than 10% in extended trading at one point after the chipmaker gave a lighter forecast for the current quarter. .

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Here’s how it fared against Refinitiv consensus estimates for the quarter ended May 1:

  • eps: $1.36, adjusted, versus $1.29 expected
  • Revenue: $8.29 billion versus $8.11 billion expected

Nvidia said revenue for the current quarter would be about $8.1 billion, well below analysts’ expectations of $8.54 billion. Nvidia stock is down more than 43% so far in 2022 as investors abandon fast-moving stocks in favor of safe bets during periods of high inflation and macroeconomic uncertainty.

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But Nvidia continues to grow its revenue strongly and still sees strong demand for its graphics processors, which are widely used for advanced gaming and artificial intelligence in the cloud. Its total sales increased 46% year-over-year, and its core businesses of data center and gaming grew during the quarter.

Nvidia’s data center business, which sells chips to cloud computing companies and enterprises, grew 83 percent annually to $3.75 billion, surpassing the company’s core gaming business, which sells graphics cards for playing advanced 3D games. grew 31% annually to $3.62 billion.

Nvidia said the growth in gaming was driven by graphics cards for laptops and chips for game consoles.

Business Visualizations for Workstations grew 67% annually to $622 million, but the company’s automotive business fell 10% on a year-over-year basis to $138 million.

Earlier this month, Nvidia announced that it had reached a settlement with the SEC in 2017 over disclosures about how cryptocurrency mining drove the company’s growth. Nvidia said that its cryptocurrency-specific product, CMP, reported a 52% drop in other revenues as revenue during the quarter was “nominal.”

Nvidia said its board has authorized an additional $15 billion in share buybacks by the end of next year. It spent $2.1 billion on share buybacks and dividends in the first quarter.

Earlier this year, Nvidia ended a major purchase of chip technology company Arm. Nvidia said it paid a $1.35 billion termination charge, which turned out to be a negative impact of 52 cents per share on a GAAP basis.

Credit: www.cnbc.com /

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