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Nvidia Earnings Beat in Q1 as Data Center Helps Offset Weakness in Gaming

Published 05/21/2020, 04:21 PM
Updated 05/21/2020, 04:22 PM
© Reuters.  NVIDIA Earnings, Revenue Beat in Q1

© Reuters. NVIDIA Earnings, Revenue Beat in Q1

By Yasin Ebrahim

Investing.com - Chipmaker Nvidia (NASDAQ:NVDA) on Thursday reported first-quarter results that topped expectations as solid performance in its fast-growing data center business helped offset weakness in its gaming business.

Nvidia shares lost 0.86% in after-hours trade following the report.

Nvidia announced earnings per share of $1.80 on revenue of $3.08 billion. Analysts polled by Investing.com anticipated EPS of $1.66 on revenue of $2.97 billion. That compared with an EPS of $0.88 on revenue of $2.22 billion in the same period a year before. Nvidia had reported EPS of $1.89 on revenue of $3.11 billion in the previous quarter.

Gaming, which accounts for the bulk of the growth, reported revenue of $1.34 billion, down 10% sequentially and up 27% from a year earlier. Data center revenue was $1.14 billion, up 18% sequentially, and up 80% from a year earlier.

For the fiscal second quarter, the company forecast revenue of $3.65 billion, give or take 2%. That was above estimates from Investing.com for $3.19 billion.

"Nvidia earnings are very much in line with expectations, showing strong demand from cloud-computing and its gaming segments. Sales from data centers were up 80% Y/Y as a stay-at-home environment playing a major role here," Investing.com analyst Haris Anwar said. "The company’s guidance for the current quarter is also quite strong suggesting that the chipmaker doesn’t see much impact from the Covid-19 on its business."

Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com's earnings calendar

Latest comments

No guidance going forward? Stay on the sidelines if you dont own it.
I think nvidia grows up aftre down price becuse gaming has no limit 😂
Why is it sells off in after hours?
Market makers are tearing Trader's faces off. Not safe to play options on earnings announcements anymore. They're running stock prices opposite directions of earnings. Cutting options prices after announcement, so you can't make a profit. I was 5 for 6 picking earnings this quarter before I gave up. Didn't make a dime.
game down 10% when game world boomed 360% in lockdown crazy nvidia has hit by lockdown so bad that it not even can make profit in something that makes so much profit that even gamemakers give free games away like cmon hp store was complete sold out from omen pcs razer same
Sell off tomorrow?
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