Nvidia released a financial report on February 24, local time. In the fourth quarter, the report showed that Nvidia’s sales increased by 61% year-on-year to $5 billion, with earnings per share of $3.1, which exceeded analysts’ expectations. This is mainly due to the growing demand for gaming and data center businesses.
Nvidia also predicts that the first-quarter revenue will reach 5.3 billion U.S. dollars, higher than the average analyst forecast of 4.51 billion U.S. dollars.
After the announcement of critical financial data, Nvidia’s stock price fluctuated sharply after the market, falling from 3% to more than 2%. The company’s stock price has doubled in the past year.
The new crown pandemic continues to drive the growth of the gaming equipment market. Nvidia’s primary graphics chip revenue increased by 47% year-on-year to US$3.06 billion, of which revenue from the gaming division reached US$2.5 billion; computing and network business (including data centers) increased by 91% year-on-year to US$1.95 billion.
In a conference call with investors, NVIDIA Chief Financial Officer Colette Kress (Colette Kress) said that the lack of global chip supply made it difficult for its flagship game chip to be launched last fall to maintain inventory. The game chip will be available this year. . The first quarter collection may still be in short supply.
Nvidia announced last week that it would launch a chip dedicated to cryptocurrency in March. But Huang Renxun, the founder and CEO of Nvidia, said that chips used for mining would not become Nvidia’s business’s main growth point. Some analysts estimate that in the fourth quarter, chips used for mining contributed between US$100 million and US$300 million to NVIDIA’s sales. Kress expects that the company’s upcoming new mining chips will generate approximately $50 million in revenue in the first fiscal quarter.
Graphics chips sold by Nvidia are mainly used in games, artificial intelligence, data centers, and automotive semiconductor components. In the context of global semiconductor shortages, the company said it is increasing chip supply.
The shortage of chip supply has affected the collection of game consoles, including Sony’s PlayStation 5 (PS5). The PS5 is one of the most popular technology products in recent months, but since Sony launched its game console in November last year, it has not been easy to keep inventory.
Analysts predict that it will take several months for the chip industry to resume standard supply. Sony Interactive Entertainment’s president and chief executive officer, Jim Ryan (Jim Ryan), said that he expects the PS5’s continued supply constraints to ease in 2021 gradually. Therefore, by the second half of 2021, you will see that we have sufficient equipment supplies. “Ryan said.
The new generation of consoles promises that they will explode our eyes with visual magic, show fast-loading games, and redefine our concept of entertainment…or something similar. A few weeks ago, when I plugged in the Xbox Series X and set it up, I was impressed by its slow speed, and some games such as Dust 5 looked great. Madden Football is the next generation experience I wait for because I often play Madden.
Using my virtual version of the New York Jet has always been an act of decompression in 2020. Madden 21, which arrived earlier this year, does not seem to have been updated at all. However, it promises to overhaul the Xbox Series X and PlayStation 5, which have new graphics and physics and NFL statistics, which should fly on the screen like actual broadcast games.
Sony hopes that by 2021, PS5 sales will exceed the previous sales of PS4. In the past, Sony has sold 14.9 million PS4 consoles. Earlier this month, Sony said it had sold 4.5 million PS5 units in November and December. Sony revealed that it plans to launch a new virtual reality headset connected to the PS5.
In the past year, demand for gaming equipment, including Nintendo, Sony, and Microsoft, has been in short supply. According to data from research institute Ampere Analysis, Nintendo sold 26 million Nintendo Switches in 2020. In the last two months of last year, Microsoft sold approximately 2.8 million X/S Xbox series.