Sign up for our free daily newsletter
Get the latest news and some fun stuff
in your inbox every day
High-end chipmaker Nvidia had very good quarterly numbers out last week, with revenue up 46% since last year and profits up by 55% to a record high.
It should be noted that their business of making graphics processors for video-gamers, which is about half their overall operation, is slowing a bit. That division has averaged over 50% year-over-year growth over the last eight quarters, but is being hampered by supply-chain challenges, and sales may even fall sequentially in the current quarter.
However, Nvidia's business of making chips for data centres is really doing very well. Revenue there surged 83% year-over-year to nearly $3.8 billion in the latest quarter. They sell these chips to cloud computing companies like Amazon, Meta Platforms, Microsoft and Google. We expect the data centre business to be their largest, in time.
This is all good and well, but why has Nvidia's share price fallen by 40% from its highs in December 2021? That has been really painful for shareholders!
To be honest, I think that it's mostly just a general tech stock sell-off, and the merits of Nvidia's growth story will win out in the end. The share price picked up by nearly 15% last week. As ever, with companies this good, just buy them and hold. Accumulate and sock them away.
