Nvidia is in the future according to the announcement, on May 26, of the results of its “first quarter of 2022”. The financial year ended on May 2 shows very satisfactory performance. Despite the chip shortage, the company posted sales of $ 5.66 billion, in 84% increase over the previous year. Company CEO Jensen Huang praised the results in a statement, “ We had a fantastic quarter, with strong demand for our products which generated record revenue ».
Video games and network computing carry NVIDIA
The company’s results were driven by the video game sector and in particular by sales of its GeForce consumer graphics processors. A side effect of the pandemic, consumers have flocked to video games at the time of lockdowns across the world. The company announced a record turnover of this sector of 2.76 billion dollars, an increase of 106% compared to the previous year.
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Another record claimed by Nvidia, the turnover of its network computing sector, including data center and AI, with 2.21 billion dollars, an increase of 88% compared to the previous year.
The last area that appears to be boosting Nvidia’s performance is the use of its products to mine cryptocurrencies. The progress in this sector is difficult to quantify by the company. She realized that the last generation of graphics card had been snapped up for this devious use, going so far as to create a secondary market. Nvidia reacted to this observation in a particular way, it added software to curb the misuse of its cards.
The objective is twofold. Encourage “minors” to buy Nvidia products adapted to this practice. More importantly, the idea is to preserve the supply of its graphics cards, constantly depleted all over the world. ” CMPs are more efficient and their production does not affect the GeForce supply. This therefore protects the offer for players Nvidia CEO Jensen Huang said at a conference with analysts, relayed by CNBC.
There is no fear of the future
Nvidia, which has become the largest chip company in the United States in terms of value, is affected like its competitors by the chip shortage. A shortage that prompted Joe Biden to announce an investment of US $ 50 billion in the field. Despite its supply difficulties, Nvidia remains confident about its prospects for the second half of 2021, believing it to be in a virtuous cycle.
The publication of Nvida’s results was an opportunity for its CEO to take stock of the acquisition of Arm Holdings, a British chip designer, for $ 40 billion. A news that had caused concern given the importance of Arm, the company designs chips for most of the world’s phone manufacturers. Jensen Huang explained that the discussion is ongoing and that an agreement should be reached by April 2022. Good news for Nvidia, whose future looks bright, especially if the chip shortage eventually hits its mark. term.