Chip maker Nvidia reported its fourth quarter financial results this week, revealing that data center sales had risen 71%.
The company had gotten a boost as cloud providers and enterprises turn to the kind of graphics processors the company makes for artificial intelligence applications.
Q4 results had beat analyst expectations, and while the company provided a strong outlook for the current quarter, shares fell about 2% in extended trading.
For the quarter, Nvidia reported earnings per share of $1.32, adjusted. According to Refinitiv consensus expectations, $1.22 had been expected. The growth represented 69% YOY.
For revenue, Nivida reported 7.64 billion, while $7.42 billion had been expected, per Refinitiv. This was up 53% year-over-year.
Looking ahead, the company said it expects to report revenue of $8.1 billion in the first quarter, higher than analyst expectations of $7.29 billion.
CEO Jensen Huang said in a statement that the company is seeing “exceptional” demand because its chips are useful for artificial intelligence and other intensive applications.
Huang also said Nvidia’s supply constraints were easing and that the company’s supply of products would increase “substantially” in the second half of 2022.
Nvidia also announced during Q4 that Facebook parent Meta would use its chips for AI research.
The company said it had $9 billion in long-term supply obligations, up from $2.54 billion a year ago. “We expect supply to improve each and every quarter going forward,” Huang said on a call with analysts.
Nvidia was in talks to purchase chip technology company Arm from SoftBank, but the deal fell through. “We gave it our best shot,” Huang said. “But the headwinds were too strong.” The company said it expected a $1.36 billion charge to operating expenses as a result of this.
Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.