Nvidia (NVDA) reported its fourth quarter earnings after the bell on Wednesday, beating analysts’ expectations on the top and bottom lines.
For the quarter, Nvidia reported adjusted earnings per share (EPS) of $5.16 on revenue of $22.1 billion. Analysts were expecting EPS of $4.60 on revenue of $20.4 billion. That’s a massive jump from the same period last quarter when Nvidia reported EPS of $0.88 on $6.1 billion a year ago. To put a finer point on Nvidia’s performance, the company reported $27 billion in revenue for all of 2022.
The company also guided higher than analysts’ expectations for the first quarter, saying it anticipates revenue of $24 billion plus or minus 2%. Wall Street was expecting $21.9 billion for quarter.
Shares of Nvidia, however, were up more than 5% following the report.
“Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations,” Nvidia CEO Jensen Huang said in a statement following the report.
“Our Data Center platform is powered by increasingly diverse drivers — demand for data processing, training and inference from large cloud-service providers and GPU-specialized ones, as well as from enterprise software and consumer internet companies. Vertical industries — led by auto, financial services and healthcare — are now at a multibillion-dollar level,” he added.
Despite the across-the-board beat, Nvidia did have at least one negative comment in its report with CFO Colette Kress warning that data center revenue out of China fell “significantly” in Q4 due to U.S. licensing requirements. The U.S. has blacklisted the sale of certain Nvidia chips to China, on fears that they could be used for military applications.
Nvidia’s all important Data Center business, which includes sales of its high-powered GPUs for AI applications, saw revenue of $18.4 billion, beating analysts’ expectations of $17.2 billion. The company reported revenue of $3.62 billion in the same quarter last year.
While Nvidia’s Data Center segment is driving the ship, its gaming business is still an important piece of the company. Revenue for the division topped out at $2.9 billion. Investor were expecting revenue of $2.7 billion, up from $1.8 billion last year.
Nvidia’s stock price has skyrocketed more than 200% over the last 12 months, easily outpacing rivals AMD (AMD) and Intel (INTC), thanks to its position as the world’s leading AI chip maker.
Daniel Howley is the tech editor at Yahoo Finance. He’s been covering the tech industry since 2011. You can follow him on Twitter @DanielHowley.
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