Nvidia ended its third fiscal quarter with record revenues of $7.1 billion, up 50% from a year earlier pushed up by data center revenues of $2.94 billion, an increase of 55%.
CEO Jensen Huang said demand for AI surged driven by investments in hyperscale and cloud and a broader adoption by more than 25,000 companies.
The stock was up by 130% for the year before the Wednesday earnings announcement and climbed quickly by 3% in after-hours trading to nearly $303.
The strong showing came on the heels of Nvidia’s GTC event where Omniverse was a major theme showing off applications for virtual worlds. Digital twins of factories, processing plants and entire cities will be possible, Huang said. “Omniverse brings together Nvidia’s expertise in AI, simulation , graphics and computing infrastructure,” he said in a statement. “This is the tip of the iceberg of what’s to come.”
On the earnings call, CFO Colette Kress reasserted the value of Nvidia’s plan to purchase Arm despite some concerns raised by regulators.
“We continue to believe in the acquisition,” she said.
Questions have been raised by regulators in the U.S., UK, EU and China, she said. UK regulators have raised concerns about competitiveness and national security, she said. Nvidia has “discussed remedies” with the U.S. Federal Trade Commission, she added.
In response to an analyst question, Huang said Nvidia has secured a "spectacular amount" of supplies from TSMC to meet its needs for growth. "We feel very good about supply starting second half of next year," he said. The chip shortage has been a "wake-up call" to semiconductor makers that they "should not take the supply chain for granted."
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