Gain Nvidia (NVDA) Q1 2023

Nvidia CEO Jensen Huang speaks during a press conference at MGM during CES 2018 in Las Vegas on January 7, 2018.

Almond Ngan | AFP | Getty Images

Nvidia Wednesday reported fiscal first-quarter earnings, beating analysts’ expectations for sales and earnings, but the stock fell more than 10% during extended trading after the chip maker provided a clear forecast for the current quarter. .

Here’s how it fared compared to Refinitiv’s consensus estimates for the quarter ended May 1:

  • EPS: $ 1.36, adjusted, versus $ 1.29 expected
  • income: $ 8.29, versus $ 8.11 billion expected

Nvidia said revenue for the current quarter would be approximately $ 8.1 billion, falling within analysts’ expectations of $ 8.54 billion.

Nvidia stock has fallen more than 43% so far in 2022 as investors shy away from fast-growing stocks in favor of safer bets during a period of high inflation and macroeconomic uncertainty.

But Nvidia continues to strongly increase its revenues and is still seeing strong demand for its graphics processors, which are widely used for advanced gaming and artificial intelligence in the cloud. Its total sales increased 46% year-over-year and its core Data Center and Gaming businesses both grew during the quarter.

Nvidia’s data center business, which sells chips to cloud computing companies and companies, grew 83% annually to $ 3.75 billion, outpacing the company’s core gaming business, which sells graphics cards for gaming. advanced 3D games, which grew 31% annually to $ 3.62 billion.

Earlier this month, Nvidia announced it had done so reached an agreement with the SEC on disclosures in 2017 about how cryptocurrency mining drove the company’s growth.

Nvidia said its board of directors has authorized an additional $ 15 billion in share buybacks by the end of next year.

Earlier this year, Nvidia discontinued a large purchase of Arm, a chip technology company. Nvidia said it paid a $ 1.335 billion resolution fee, which negatively impacted 52 cents per share, according to GAAP accounting.