Nvidia, the leading graphics processing unit (GPU) manufacturer, has reported better-than-expected earnings for the fourth quarter of 2021, thanks to strong demand for its artificial intelligence chips. The company’s shares surged in after-hours trading following the announcement, reaching new all-time highs.
For the quarter ended January 31, 2021, Nvidia reported revenue of $5 billion, up 61% year-over-year and well above analysts’ expectations of $4.82 billion. The company’s net income for the quarter was $1.46 billion, up 53% year-over-year.
The strong results were driven by robust demand for Nvidia’s artificial intelligence chips , which are used in a wide range of applications, including gaming, data centers, and autonomous vehicles. During the quarter, Nvidia’s gaming revenue grew 67% year-over-year, while its data center revenue grew 97% year-over-year.
Nvidia’s A.I. chips are particularly well-suited to power machine learning and deep learning applications, which are becoming increasingly important in fields like healthcare, finance, and manufacturing. The company’s artificial intelligence chips are also used in cutting-edge technologies like self-driving cars and robotics.
In addition to its strong earnings, Nvidia also announced a 4-for-1 stock split, which will make its shares more accessible to a wider range of investors. The split is set to take effect on July 20, 2021.
Nvidia’s strong earnings and stock split announcement were met with enthusiasm from investors, with the company’s shares surging more than 7% in after-hours trading. The company’s market capitalization now stands at around $500 billion, making it one of the most valuable technology companies in the world.
Looking ahead, Nvidia is well-positioned to continue benefiting from the growing demand for artificial intelligence chips and related technologies. The company’s recent acquisition of Arm, a leading semiconductor design company, could also help to further boost its capabilities in the space.
Overall, Nvidia’s strong earnings report and stock split announcement reflect the company’s continued success in the rapidly growing market for A.I. and machine learning technology. As these technologies become increasingly important across a wide range of industries, Nvidia’s position as a leading provider of A.I. chips is likely to continue driving growth and innovation in the years to come.