Nvidia reported results for the the last quarter of their financial year, and said that they were unable to meet demand for their products. That's a good problem to have, I suppose. That is what Nvidia experienced in the last quarter of their financial year. Results on Wednesday showed a whopping 61% growth in revenue thanks to a huge surge in gaming demand.
Gaming sales grew 67% and represented half of all Nvidia sales. Their other big division is data centres. That grew 41% in the quarter, representing 38% of sales. The other two sectors are Automotive and Professional Design, and Visualisation. These sectors had a tough year but showed a good recovery in the last quarter.
The company made $10 a share for the full year, up 73% from the year before. It may be trading at 58 times earnings but it is growing incredibly fast.
Can Nvidia maintain this growth? We don't see demand for gaming or data processing slowing down anytime soon. Our research shows that Nvidia are yonks ahead of the pack in terms of technology. This stock is one you should definitely own, especially after the 8% drop yesterday.
Their potential ARM acquisition will give them added exposure to the growing smartphone market. The deal may not go through, because it is seen by some as anti-competitive. We will have to wait and see if it goes ahead.
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