Nvidia Earnings Rise, as Coronavirus Lifts Games and Remote Services
May 21 2020 - 5:59PM
Dow Jones News
By Asa Fitch
Strong growth in computer games and remote computing services,
driven by people stuck at home during the coronavirus pandemic,
lifted earnings for chip maker Nvidia Corp.
First-quarter revenue rose 39% from a year earlier to $3.08
billion, the Santa Clara, Calif.-based company said Thursday.
Earnings per share totaled $1.47, more than double last year's
figure.
The company said its data-center sales rose 80% to a record
$1.14 billion. Revenue at the games segment increased 27% to $1.34
billion.
Nvidia's results provide an indication of how some corners of
the tech industry might be more resilient than others to the impact
of the prolonged effects of the pandemic. The results reported by
most major U.S. tech companies in recent weeks covered the first
three months of the year, and reflect only a few weeks of
quarantine measures rolled out across much of the country in March.
Nvidia's latest earnings cover the February-through-April period,
offering a broader look at the pandemic's impact.
The company's rollout of new products has continued apace
despite the global health crisis. Earlier this month, Chief
Executive Jensen Huang revealed an advanced graphics-processing
chip design and a new type of chip aimed at accelerating
artificial-intelligence calculations in data centers.
Nvidia issued guidance for the current quarter, which ends in
July, of about $3.65 billion in sales, above analysts' $3.25
billion average forecast in a FactSet survey. The company said its
forecast reflects Nvidia's purchase of Mellanox Technologies Ltd.
for about $7 billion, which was announced last year and closed late
last month.
The company's results for the April quarter beat Wall Street
projections. Analysts had expected sales of $2.98 billion and
earnings per share of $1.39.
Nvidia's shares traded mixed in after-hours trading. The stock
had surged about 30% since it last reported earnings.
Write to Asa Fitch at asa.fitch@wsj.com
(END) Dow Jones Newswires
May 21, 2020 17:44 ET (21:44 GMT)
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