Nvidia reported fiscal 2022 and Q4 earnings, with record quarterly and full-year revenue for gaming, data center, and professional vision.
Mr. Jensen Huang, CEO of NVIDIA, said that seeing the huge market demand for NVIDIA computing platforms, and Nvidia is driving advances in artificial intelligence, digital biology, climate science, gaming, creative design, self-driving cars, and robotics, some of the most impactful fields today. With new software business models such as NVIDIA AI, NVIDIA Omniverse, and NVIDIA DRIVE, NVIDIA is heading into the new year with strong momentum. At the upcoming GTC, Nvidia will announce many new products, applications, and partners for computing.
The financial report shows that in the fourth quarter of the fiscal year 2022, Nvidia’s revenue reached $7.64 billion, an increase of 53% year-on-year and an increase of 8% month-on-month; net profit was $3.003 billion, a year-on-year increase of 106% and a month-on-month increase of 22%; gross profit margin reached 65.4%, a year-on-year increase of 2.3 percentage points. Among them, the game business revenue was $3.42 billion, a year-on-year increase of 37% and a month-on-month increase of 6%; the data center business revenue was $3.26 billion, an increase of 71% year-on-year and an increase of 11% month-on-month; visualization business revenue was 643 million yuan, a year-on-year increase of 109% and a month-on-month increase of 11%; automotive revenue was $125 million, down 14% year over year and down 7% sequentially.
In fiscal 2022, total revenue reached $26.91 billion, a 61% increase from the previous year. Among them, the game business revenue was $12.46 billion, the data center business revenue was $10.61 billion, the visualization business revenue was $2.11 billion, and the automotive business revenue was $566 million. Nvidia expects revenue to reach $8.1 billion in the first quarter of fiscal 2023, exceeding market expectations, and gross profit margins will remain high at around 65.2%. However, due to the failure of the acquisition of Arm, it will lose $1.36 billion, which will be included in operating costs of $3.55 billion.
Although Nvidia delivered an excellent answer to the market, the stock price has fallen since the earnings report. Although there are overall factors in the market, some analysts believe that the main reason is that the gross profit margin is lower than the market’s expectation of 67.1% and the growth rate has slowed down. Nvidia’s gross margins have been somewhat stagnant since 2019. In addition, the strong performance in the fourth quarter was related to the recovery of the supply chain, after overall deliveries fell in the third quarter due to supply chain issues.
