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Ian King (Bloomberg) – Nvidia Corp. gave forecasts for the current period that showed that gaming computer manufacturers are starting to order graphics chips after they have been rebuilt in an inventory.
The revenue will be about $ 2.55 billion this quarter, plus or minus 2 percent, the company based in Santa Clara, California, said Thursday. This compares with an average estimate of $ 2.53 billion from analysts. The stock advanced 7.4% in prolonged trading, but it virtually reduced its gains after Colette Kress, chief financial officer, said in a conference call that the outlook for the server market had deteriorated from the start quarterly. She said the market was hard to predict and Nvidia had not updated its annual forecasts.
Nvidia President and CEO Jensen Huang is trying to bring his company back to the growth it has experienced over the past five years, when turnover has more than doubled. For that, he needs Nvidia's core business – the graphics chips used in gaming computers – to come out of an inventory stack that delays new orders. In data centers, where Nvidia chips have begun to play a growing role in artificial intelligence computing, Huang is looking for big companies such as Google and Amazon Inc.'s AWS Alphabet to take back their infrastructure spending.
Huang praised the positive results.
"Nvdia is back on an upward trajectory," he said in a statement. "We have returned to growth in the game."
Net income was $ 394 million, or 64 cents per share, for the quarter ended April 28, compared to $ 1.24 billion, or $ 1.98 per share, during the same period last year. previous year. Sales fell 31% from one year to the next to settle at $ 2.22 billion. Analysts had on average an estimated profit of 56 cents per share on a $ 2.2 billion business figure.
Revenues for the quarter were up 1% from the previous period.
Nvidia's consecutive earnings gains, which began in 2014, ended in the fourth quarter. The demand for graphics chips used by minors crypto-currencies has faded after the fall of the market of digital coins. The resulting excess inventory has resulted in slower ordering of chips, typically used by PC gamers to obtain the most realistic video available.
Huang said three months ago that the first quarter would be the bottom of the stocks. The title has risen 20% this year to reach 160.19 dollars at the close of Thursday.
In data centers, other chip makers, including Intel Corp., posted weaker earnings and pointed to bleak spending by cloud service providers who take a break after having invested money in new equipment last year.
Nvidia's revenue from data centers again decreased in the first fiscal quarter, from 63% to $ 634 million year-over-year. Gambling revenues were $ 1.06 billion, down 39% from the same period last year, but up 11% from the prior quarter.
The company mentioned the "short-term pause in demand for very large customers" for the decline in server chip sales.
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