Nvidia found a gold mine with graphics cards and chips for applications with artificial intelligence. However, business with car manufacturers is stalling.
The high demand for its chips for data centers and computer games brings the semiconductor specialist Nvidia strong growth.
In the past quarter, the US company’s revenue rose 50 percent year-on-year to $ 7.1 billion. The profit jumped 84 percent to 2.46 billion dollars, as Nvidia announced after the US market closed.
In gaming, where Nvidia’s graphics cards are popular, business grew 42 percent to $ 3.2 billion. The business with chips for data centers increased by 55 percent to a good 2.9 billion dollars. Nvidia’s technology is used, among other things, for applications with artificial intelligence.
In the business with car manufacturers, Nvidia is also slowed down by the bottlenecks in components, because of which vehicles cannot be finished. The division’s quarterly sales fell eleven percent to $ 135 million.
outlook
For the current quarter, the group expects further growth overall: The sales forecast of 7.4 billion dollars exceeded the expectations of analysts, who had expected around 6.9 billion dollars. The share rose in after-hours trading by almost five percent. The rate has more than doubled since the beginning of the year.
Despite concerns from competition watchdogs, Nvidia reiterated plans to purchase British chip designer Arm, whose technology is in virtually all smartphones. One continues to believe in the advantages of the planned takeover, emphasized CFO Colette Kress in a conference call with analysts. She said the FTC also has concerns. Possible concessions are being discussed. The deal is also being examined in depth in the EU and Great Britain.
Companies such as Qualcomm, Apple and Samsung design their own processors for mobile devices based on Arm’s chip architectures. Some of Arm’s customers fear that the chip designer could become more focused on Nvidia’s interests after the takeover. Nvidia denies this.
Company boss Jensen Huang also sees great future business in Nvidia’s “Omniverse” – a platform for the virtual simulation of real environments such as factories, in which processes and procedures can be optimized.
Source From: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
