Nvidia Benefits from Sustained Pandemic-Era Remote Work, Videogaming Demand
November 18 2020 - 5:10PM
Dow Jones News
By Asa Fitch
Graphics-chip maker Nvidia Corp. reported record quarterly sales
and a jump in profit, propelled by a pandemic-era boom in home
computing and videogaming and the increasing use of its chips in
big data centers.
The company on Wednesday posted fiscal third quarter sales of
$4.73 billion, up by 57% from the previous year. Earnings per share
rose to $2.12 from $1.45 in the same period last year.
The earnings were better than analysts surveyed by FactSet
expected. The company's outlook for the current quarter of around
$4.8 billion in sales also topped Wall Street's expectations.
Chief Executive Jensen Huang has transformed Nvidia over the
past decade from a niche player in graphics-processing chips into a
major force in artificial intelligence and data-science
computing.
During the pandemic, Nvidia has been one of the leading examples
of technology companies that have benefited from people staying
home and using their computers and gaming machines more. Nvidia's
chips are in Nintendo Switch gaming consoles that have been hot
commodities during global lockdowns: almost seven million sold in
the third quarter, according to Nintendo.
"Nvidia is firing on all cylinders, achieving record revenues in
Gaming, Data Center and overall," Mr. Huang said.
The Santa Clara, Calif.-based company's shares have more than
doubled this year, and Nvidia has surpassed Intel Corp. as the most
valuable U.S. semiconductor company.
Leveraging that rise, Mr. Huang wants to expand Nvidia's focus
further with the proposed $40 billion acquisition of U.K.-based
chip designer Arm Holdings. Arm's circuit designs are in almost all
smartphones, and its acquisition would instantly open up a new
business line for Nvidia.
Write to Asa Fitch at asa.fitch@wsj.com
(END) Dow Jones Newswires
November 18, 2020 16:55 ET (21:55 GMT)
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