Nvidia Posts Record Earnings on Videogaming, Cryptocurrency Demand
May 26 2021 - 4:17PM
Dow Jones News
By Asa Fitch
Nvidia Corp. reported a record quarterly revenue and profit,
propelled by demand for videogaming and cryptocurrency and despite
a broad-based shortage of semiconductors.
The chip maker on Wednesday posted net income for its most
recent quarter of $1.91 billion, more than double the year-prior
figure. Revenue also rose to $5.66 billion. Both profit and revenue
exceeded expectations, according to analysts surveyed by
FactSet.
Nvidia is the latest chip company to have enjoyed months of
booming demand for computing power that has padded order books. The
hot market has triggered shortages of some chips, affecting
companies as varied as Apple Inc. and Ford Motor Co. and
contributing to President Biden's recent call for $50 billion to
strengthen the U.S. semiconductor industry.
Santa Clara, Calif.-based Nvidia, which last year became
America's biggest chip company by value, specializes in graphics
processors that have flown off the shelf with people flocking to
videogaming for entertainment during the pandemic. The way those
graphic chips work has also made them popular for other
applications, including performing artificial-intelligence
calculations and mining cryptocurrencies, further inflating
demand.
"Across industries, the adoption of Nvidia computing platforms
is accelerating," company Chief Executive Jensen Huang said in a
statement.
The company said it expected revenue of around $6.3 billion for
the current quarter, topping Wall Street's expectations.
The company's shares were little changed in after-hours
trading.
Write to Asa Fitch at asa.fitch@wsj.com
(END) Dow Jones Newswires
May 26, 2021 17:07 ET (21:07 GMT)
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