NVDA) stock

Nvidia has increasingly been seen by investors as one of the chip stocks best positioned to endure an economic slowdown that hurts PC and semiconductor ...

Nvidia's professional visualization business for designers reported $226 million in revenue, down 65% annually, and automotive revenue was $294 million, up 135% from last year. Specifically, Nvidia reported $1.83 billion in fourth-quarter gaming revenue, a 46% drop from the same time last year. Nintendo uses a Nvidia chip to power the Switch. The pandemic encouraged gamers to upgrade their systems with new graphics cards from companies like Nvidia, but sales significantly slowed in the past year. Most of Nvidia's sales of GPUs for artificial intelligence fall into the company's data center category. Nvidia reported $0.57 in GAAP net income per share.

Nvidia shares jumped Wednesday, as the graphics-chip specialist sold more gaming chips and forecast stronger revenue than Wall Street was expecting.

This downtick follows roughly 33% growth in 2022 and 26% growth in 2021,” Stifel analysts wrote in a preview of the report this week. Nvidia reported fourth-quarter net income of $1.41 billion, or 57 cents a share, compared with $3 billion, or $1.18 a share, in the year-ago period. Nvidia forecast first-quarter revenue of $6.37 billion to $6.63 billion, while analysts on average were estimating earnings of 85 cents a share on revenue of $6.31 billion for the first quarter. illustrates expectations for a 3% decline in spending from the top seven cloud-service providers, in aggregate, in 2023. “While we expect AI-focused investments to remain a priority and potentially escalate as competition heats up, we remain wary of expectations for significant slowing in overall data-center capex spending in 2023.” Adjusted earnings, which exclude stock-based compensation expenses and other items, were 88 cents a share, compared with $1.32 a share in the year-ago period. Gaming sales reached $1.83 billion, while analysts on average were expecting $1.59 billion, according to FactSet. Data-center sales rose 11% to $3.62 billion from a year ago, missing analysts’ average forecast of $3.85 billion. The new cloud-based offering will go beyond offering the higher level of computational abilities that Nvidia gear can provide, and include access to Nvidia software. Kress said data-center sales are expected to grow sequentially and year over year, “accelerating past Q1.” “As we scale, software standalone going forward, it will be a driver,” Kress told MarketWatch. has just gone through the roof over the last 60 days,” Huang said.