On Wednesday, shares of Nvidia fell as much as 2 percent in after-hours trading after the company reported second-quarter earnings, according to CNBC.
Nvidia's earnings beat expectations.
The company reported:
- Earnings: $2.18 per share, adjusted, vs. expected $1.97 per share, according to Refinitiv.
- Revenue: $3.87 billion, vs. expected $3.65 billion, according to Refinitiv.
Overall revenue increased by 50 percent on an annualized basis. The gaming division brought in $1.65 billion in revenue. Datacenter revenue came in at $1.75 billion. Nvidia has shifted its focus more to the sales of graphics processing units for artificial intelligence software.
“We’re expecting a really strong second half for gaming,” Nvidia CEO Jensen Huang said. “I think this may very well be one of the best gaming seasons ever.” These comments come as Microsoft and Sony prepare to release their new gaming consoles.
Professional visualization and automotive fell during the quarter amid the coronavirus pandemic. “Sales were hurt by lower enterprise demand and the closure of many offices around the world,” said Colette Kress, Nvidia’s finance chief. “Industries negatively impacted during the quarter include automotive, architectural engineering and construction, manufacturing, media and entertainment, and oil and gas.”
Huang also spoke about Nvidia's work with chip-architecture company Arm, but didn't address reports that they were looking to acquire the company from SoftBank.
"We’ve been a long-term partner of Arm, and we use Arm in a whole bunch of applications, and whether it’s autonomous driving or robotics applications, the Nintendo Switch console business that we’re in, and then recently, we brought Cuda to Arm, and to bring accelerated computing to Arm, and so we work with the Arm team very closely,” he said. “They’re really great guys, and one of the special [things] about the Arm architecture that you know very well is that it’s incredibly energy-efficient, and because it’s energy efficient, it has the headroom to scale into very high-performance levels over time.”