NVIDIA Corp’s revenue for this quarter in their closely watched automotive and data centers businesses missed the estimates of the analysts because of which the shares of the chipmaker were dragged down. NVDIA’s shares have nearly tripled in the past 12 months and this was the first drop.
Their shares were down by 6.6% on Thursday. Over the past year, the shares have risen at least 181%, which is the strongest performance in S&P 500.
NVDIA started as a chip manufacturer in the gaming industry, but recently they are expanding to other sectors like self-driving cars, artificial intelligence, cloud computing etc.
The data center business revenue doubled to about $416 Million but still missed the estimates of $423.3 Million. The automotive business, on the other hand, had a surge from 19.3% in revenue to $142 Million, but even then it fell short of the estimates of $146.2 Million.
However, total revenue and earnings easily beat the targets of the analysts. This was because of the strength in their core business, which is now also used for cryptocurrency transactions. Cryptocurrency has seen a huge surge in the recent years due to Bitcoin, but new technologies have started using high end gaming cards for mining.
Miners use computers to process transactions and they are rewarded with additional currency.
The total income doubled to about $583 Million i.e. 92 cents/share in the quarter that ended on July 30. NVIDIA’S revenue also rose to $2.23 Billion or by 56% beating the $1.96 Billion estimate.
NVIDIA’s expectations for the third quarter revenue is $2.35 Billion and analysts expect $2.13 Billion.