By Yasin Ebrahim
Investing.com – Chipmaker Nvidia (NASDAQ:) on Thursday reported first-quarter results that topped expectations as solid performance in its fast-growing data center business helped offset weakness in its gaming business.
Nvidia shares lost 0.86% in after-hours trade following the report.
Nvidia announced earnings per share of $1.80 on revenue of $3.08 billion. Analysts polled by Investing.com anticipated EPS of $1.66 on revenue of $2.97 billion. That compared with an EPS of $0.88 on revenue of $2.22 billion in the same period a year before. Nvidia had reported EPS of $1.89 on revenue of $3.11 billion in the previous quarter.
Gaming, which accounts for the bulk of the growth, reported revenue of $1.34 billion, down 10% sequentially and up 27% from a year earlier. Data center revenue was $1.14 billion, up 18% sequentially, and up 80% from a year earlier.
For the fiscal second quarter, the company forecast revenue of $3.65 billion, give or take 2%. That was above estimates from Investing.com for $3.19 billion.
“Nvidia earnings are very much in line with expectations, showing strong demand from cloud-computing and its gaming segments. Sales from data centers were up 80% Y/Y as a stay-at-home environment playing a major role here,” Investing.com analyst Haris Anwar said. “The company’s guidance for the current quarter is also quite strong suggesting that the chipmaker doesn’t see much impact from the Covid-19 on its business.”
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