Nvidia (NASDAQ:NVDA) easily beat analyst expectations for both earnings and revenue for the fourth quarter of last year.
Nvidia earnings were $3.10 per share versus $2.81 per share that was expected by analysts.
Revenue came in at $5 billion compared to $4.82 billion expected by analysts. Nvidia reported that its sales rose 61% year-over-year in the fourth quarter, which ended on December 31.
Nvidia also suggested that its growth will continue, forecasting $5.3 billion in revenue for the current first quarter, ahead of expectations of $4.51 billion in revenue.
Despite the positive results and forward guidance, Nvidia shares were down about 2% in premarket trading after company Chief Executive Officer Jensen Huang said he doesn’t expect cryptocurrency to be a significant part of Nvidia’s business moving forward.
Earlier this week, Nvidia announced new graphics cards designed for mining cryptocurrencies such as Ethereum. But on the latest earnings call, Huang said: "We expect that to be a small part of our business as we go forward," referring to the cryptocurrency cards.
Last September, Nvidia said it planned to buy ARM from Softbank for $40 billion U.S. in a transaction with big implications for the entire semiconductor industry. ARM develops low-level technology widely used across the industry to develop low-power microchips for mobile devices — and it supplies technology to most of Nvidia’s competitors.
On the earnings call, Huang sought to reassure investors that the ARM transaction remains on track. "We are making good progress toward acquiring ARM, which will create enormous new opportunities for the entire ecosystem," he said.
Tech Insider
