Nvidia Corp., the world\u2019s largest chipmaker by market value, jumped in late trading after an expansion into data-center semiconductors helped bolster its sales forecast.<\/p>\n
Revenue in the fiscal fourth quarter will be about $7.4 billion, the company said Wednesday.<\/p>\n
That compares with a $6.86 billion average analyst estimate, according to data compiled by Bloomberg. The shares rose as much as 5.7% after the report was released.<\/p>\n
Nvidia, whose roots are in graphics chips for gaming systems, has pushed into processors that run servers — the powerful machines used in cloud computing and corporate networks.<\/p>\n
Revenue from that segment jumped 55% in the third quarter to $2.94 billion, well ahead of the $2.69 billion estimated by analysts. Sales to the auto industry, though, were disappointing — hurt by supply constraints.<\/p>\n
Nvidia has averaged about 57% revenue growth over the last eight quarters.<\/p>\n
That performance has helped push its market capitalization above $730 billion, making it more than three times the size of Intel Corp., a company that has triple Nvidia\u2019s annual revenue.<\/p>\n
Nvidia is now one of the top 10 companies by market value in the S&P 500 Index, putting it just ahead of Berkshire Hathaway Inc., JPMorgan Chase & Co. and Visa Inc.<\/p>\n
Even before the post-market rally, Nvidia\u2019s shares had more than doubled this year.<\/p>\n
Nvidia posted record sales of $7.1 billion in the third fiscal quarter, topping the $6.81 billion average prediction from analysts. Earnings came in at $1.17 a share, excluding some items, compared with an estimate of $1.11.<\/p>\n
Nvidia also sells processors that handle cryptocurrency mining, but that market has been volatile. The division that includes that business saw its revenue climb 21% from a year earlier, with $105 million in revenue coming from the mining chips.<\/p>\n
The company sees another big opportunity helping power the so-called metaverse — a term for interconnected virtual worlds. The company has a software platform, Omniverse, for creating 3D online spaces.<\/p>\n
Meanwhile, Nvidia is more than a year into the process of trying to acquire Arm Ltd., a designer of chips used in smartphones and myriad other technologies. It\u2019s still trying to obtain regulatory clearance for the deal in multiple jurisdictions around the world.<\/p>\n
The U.S. Federal Trade Commission has expressed concerns about the purchase, Nvidia said Wednesday. Bloomberg\u00a0reported<\/a><\/strong>\u00a0on the agency\u2019s probe earlier this year.<\/p>\n The transaction would give Nvidia Chief Executive Officer Jensen Huang the most widely used underlying technology in the chip industry and spread the company\u2019s reach into many devices, including smartphones.<\/p>\n But several of Arm\u2019s major customers, and Nvidia\u2019s competitors, have voiced their opposition to the purchase because of potential conflicts it might create. SoftBank Group Corp. currently owns Arm.<\/p>\n Nvidia said on its earnings call that the merger would enhance competition and described the deal as a great opportunity for the industry.<\/p>\n Nvidia Corp., the world\u2019s largest chipmaker by market value, jumped in late trading after an expansion into data-center semiconductors helped bolster its sales forecast.\u00a0<\/p>\n","protected":false},"author":341034,"featured_media":393117,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[25],"tags":[2752,70419,22807,3838,41838],"class_list":["post-423392","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cloud-hosting","tag-arm","tag-chip-shortage","tag-data-centres","tag-nvidia","tag-server-processor"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/423392"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=423392"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/423392\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/393117"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=423392"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=423392"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=423392"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Now read: AMD will launch 128-core processor<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"