Nvidia announced its results for the fourth fiscal quarter of 2021. Despite the shortage of semiconductors and the abandonment of the acquisition of ARM, the company is doing very well and continues to see its profits increase.
Gaming always ahead
The CEO of Nvidia, Jensen Huang, also addressed the disappointment of his firm in the ARM file, which was ultimately not acquired because of the many antitrust suspicions weighing against Nvidia: “ We did our best, but the headwinds were too strong “, did he declare. This case is expected to cost the company $1.36 billion in losses.
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For its fourth quarter, the company still recorded a turnover of 7.64 billion dollars, an increase of 53% compared to the same period of the previous year and a very slight decrease compared to the previous quarter. ” We are seeing exceptional demand for Nvidia computing platforms. The Company Powers Advances in AI, Computational Biology, Climate Science, Games, Creative Design, Autonomous Vehicles and Robotics – Some of Today’s Most Impactful Fields “said Jensen Huang when announcing the financial results of the company.
Unsurprisingly, it is the video game sector that continues to be the most prolific for the firm, in particular thanks to its new GeForce processors which make it possible to play very advanced games on computers. Nvidia’s gaming division, led by GeForce sales, was up 37% year-on-year to $3.42 billion.
Its Professional Visualization division, which includes chips manufactured for computer-aided design and rendering, saw immense growth (+109%). It generated $643 million for Nvidia.
Video games continue to generate the most revenue for Nvidia. Photography: Resul Kaya / Unsplash
The cloud boosts Nvidia’s revenue… but not the automotive industry
The Covid-19 pandemic has greatly increased demand in the cloud computing sectors and Nvidia is taking advantage of this. As explained CNBC, cloud service providers are turning to enterprise graphics processors, which are used for different areas related to artificial intelligence, such as speech recognition and recommendations. As a result, Nvidia reported revenue of $3.26 billion for its data center business, up 71% from the last quarter of 2020. As an example, Meta recently announced that it would use Nvidia chips for its research in artificial intelligence.
However, there is one sector in which the firm has seen its revenues decline, that of the automobile. With $125 million in profits, it tumbled 14% from a year ago. Nvidia explains this in particular by the supply constraints encountered by car manufacturers, a sector particularly affected by the shortage of electronic components. Although this area is not favored by Nvidia, it represents a real opportunity to grow its business. In this context, the company announced a partnership with Jaguar Land Rover. Goal: Develop and deliver next-generation automated driving systems, AI-based services and experiences, and equip 10 million vehicles over a decade.
Soon announcements from Nvidia on its metaverse
For the first fiscal quarter of 2022, Nvidia expects to earn $8.1 billion in revenue, better than analysts’ predictions of $7.29 billion in revenue. ” We enter the new year with strong momentum across all of our businesses and great traction with our new software business models with Nvidia AI, Nvidia Omniverse and Nvidia Drive. The GTC (Editor’s note: Nvidia developer conference) is coming. We will be announcing many new products, applications and partners for Nvidia Computing “said the CEO of the company.
Nvidia revealed last November that it was developing its own metaverse for engineers and businesses dubbed the Omniverse, an area where announcements are coming soon and which may represent a major growth area for the company.
This new quarter demonstrates the very good health of Nvidia which, despite some setbacks, continues to grow impressively. The company thus justifies its status as the most valuable electronic chip company in the United States, ahead of Intel and Qualcomm.