The semiconductor giant reported adjusted earnings per share of $2.18, exceeding expectations of $1.98. Revenue of $3.87 billion also surpassed estimates of $3.65 billion.
Strong results were driven by Nvidia’s gaming and data center segments. Gaming revenue in the quarter rose 26% to $1.65 billion. “Growth in GeForce gaming accelerated as gamers increasingly immerse themselves in realistic virtual worlds created by NVIDIA RTX ray tracing and AI," CEO Jensen Huang said in the earnings release.
Nvidia’s data center segment saw a 167% jump to $1.75 billion, exceeding estimates of a 162% year over year increase.
Nvidia saw its automotive and professional visualization platforms experience declines as expected, driven by the continued coronavirus pandemic. “We are well positioned to grow, as gaming, AI, cloud computing and autonomous machines drive the next industrial revolution around the world,” Huang said.
Despite generally strong results, Nvidia stock was down slightly after earnings after hitting an intraday high of $496.39 earlier in the week.
How is Jim Cramer approaching the stock, a name his Action Alerts PLUS portfolio has long loved, now?
Over and over again, Cramer has expressed his love of the company, but that doesn't mean he wouldn't sell the stock. Cramer breaks down what would trigger his sell button in the video above.