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American multinational technology company with a specialty in designing computer systems, NVIDIA has released its financial results for the second quarter, recording a 68% surge in revenue from the year-ago period.
As published by the firm, the revenue came in at $6.51 billion, a figure that is more than the expected $6.33 billion according to Refinitiv consensus.
NVIDIA’s performance in comparison with Wall Street estimates was largely impressive, except for the sales of cryptocurrency-related chips, called CMP that plummeted based on the company’s own projections. Back in May, NVIDIA Corporation (NASDAQ: NVDA) projected its crypto-related sales will top $400 million by the end of the second quarter, albeit, the firm ended up with $266 million.
Here are the other top highlights from NVIDIA’s earnings report; GAAP earnings per diluted share for the quarter came in at $0.94, up 276% from the year-ago period and up 24 percent from the previous quarter. Non-GAAP earnings per diluted share were $1.04, up 89 percent from a year ago and up 14 percent from the previous quarter. Wall Street analysts had an expectation of $1.01 for the Non-GAAP Earnings.
The company’s record Gaming revenue came in at $3.06 billion for the quarter, up 85% from a year earlier and Data Center revenue surged 35% from a year earlier to $2.37 billion. NVIDIA and its revenue hits are mostly helped by the chip shortage situation worldwide, helping the firm sell out its stock, and correspondingly, bolstering earnings.
Despite failing to meet expectations with its CMP products, NVIDIA’s investors are pushing for more buys, a trend that is reflecting in the firm’s share price, which is up 1.05% to $192.40 in the Pre-market today.
NVIDIA Revenue Amidst the Stalling Arm Deal
The businesses that NVIDIA is expected to boost by virtue of its proposed acquisition of Arm Holdings from SoftBank Group Corp (OTCMKTS: SFTBY) is still under probability as the $40 billion deal is pending. Stalled by concerns from NVIDIA’s competitors who fears access to important Arm technology may be lost should the firm be sold to the US Chip giant.
The company has downplayed these concerns, noting the deal will be all the more beneficial to Arm.
Although some Arm licensees have expressed concerns or objected to the transaction, and discussions with regulators are taking longer than initially thought, we are confident in the deal and that regulators should recognize the benefits of the acquisition to Arm, its licensees, and the industry,” Nvidia said in a statement.
Arm Holdings specializes in offering design architectures for mobile phones. This also includes architecture in Qualcomm Inc (NASDAQ: QCOM) chips used in a majority of Android phones and Apple iPhones. Should the deal eventually pull through, NVIDIA is on track to wade into these market segment through Arm, a combined entity which is poised to impact on the firm’s revenue in the coming quarters.