By Maria Armental
Graphics-chip maker Nvidia Corp. posted record quarterly revenue, capping a year dominated by pandemic-fueled demand for its chips in laptops, videogame machines and big data centers.
Nvidia on Wednesday reported fiscal fourth-quarter revenue of $5 billion, up 61% from a year earlier, generating $2.31 in earnings a share. It also said it expects about $5.3 billion in revenue for the current quarter, ahead of Wall Street’s expectations.
Demand for some of Nvidia’s chips has been so hot that it has outpaced the company’s ability to increase production, adding to chip-supply shortages riling the semiconductor industry.
The quarterly numbers, Chief Executive Jensen Huang said in a written statement, close out “a breakout year” for the company, underpinned by the strength in videogames, increased demand for artificial-intelligence products, and other demand drivers.
Through Wednesday’s close, the Santa Clara, Calif.-based company’s shares have more than doubled over the past 12 months. Nvidia last year surpassed Intel Corp. as the most valuable U.S. semiconductor company.
Shares in Nvidia rose 2.5% to $579.96 on Wednesday. The stock also advanced in after-hours trading, following the earnings report.
Mr. Huang wants to expand Nvidia’s focus with the proposed $40 billion acquisition of U.K.-based chip designer Arm Holdings from SoftBank Group Corp. Arm’s circuit designs are in almost all smartphones, and its acquisition would open up a new business line for Nvidia.
The proposed acquisition has attracted regulatory scrutiny. Some rivals are concerned about the prospect of one of their chip-making competitors owning Arm, potentially undermining its attractiveness as a neutral supplier. Nvidia has said it supports keeping Arm’s open business model,
“We are making good progress toward acquiring Arm,” Mr. Huang said.
Write to Maria Armental at firstname.lastname@example.org
(END) Dow Jones Newswires
February 24, 2021 17:37 ET (22:37 GMT)
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