NVIDIA CORP Quarterly Report for Q2 Ended May 2, 2021

Summary

NVIDIA Corporation reported strong financial performance for the first quarter of fiscal year 2022, ending May 2, 2021. Revenue surged by 84% year-over-year to $5.66 billion, driven by significant growth in both the Graphics and Compute & Networking segments. The Graphics segment saw an 81% increase, largely due to robust sales of GeForce RTX 30 Series GPUs, benefiting also from cryptocurrency mining demand. The Compute & Networking segment experienced an 88% rise, bolstered by the Mellanox acquisition and the ramp-up of NVIDIA Ampere GPU architecture products. Net income more than doubled to $1.91 billion, with diluted earnings per share reaching $3.03, a 106% increase year-over-year. The company highlighted strong demand across its market platforms, particularly in Gaming and Data Center, while also navigating supply constraints expected to continue into the second half of the fiscal year. NVIDIA also announced a planned four-for-one stock split, subject to shareholder approval, signaling confidence in future growth.

Key Highlights

• 1Total revenue for the first quarter of FY2022 reached $5.66 billion, an 84% increase year-over-year.
• 2Net income more than doubled to $1.91 billion, with diluted EPS up 106% year-over-year to $3.03.
• 3Graphics segment revenue grew 81% YoY to $3.45 billion, driven by strong GeForce GPU sales and crypto mining demand.
• 4Compute & Networking segment revenue increased 88% YoY to $2.21 billion, benefiting from the Mellanox acquisition and Ampere GPU ramp.
• 5Gross margin slightly decreased to 64.1% YoY, primarily due to amortization of intangible assets from the Mellanox acquisition.
• 6The company announced a proposed four-for-one stock split, indicating management's confidence in future performance.
• 7NVIDIA expects to remain supply-constrained in the gaming segment through the second half of the fiscal year.

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