Nvidia’s (NASDAQ: NVDA) earnings for the second fiscal quarter ending August 1 has beaten Wall Street estimates. The tech giant reported a fiscal second-quarter net income of $2.4 billion, up from a profit of $622 million in the year-ago period. Strong graphics card sales and an increased interest in the company’s data center capabilities drove the rise.
Nvidia’s gaming segment grew 85% to $3.06 billion. Data center and professional visualization grew to roughly $2.89 billion. The company ended Q2 with approximately $6.5 billion in revenue for the quarter, an increase of 68% in revenue over the last year.
Industry analysts had forecast adjusted earnings of $1.01 a share on revenue of $6.3 billion.
Despite the growth, not all the news was positive for the California-based firm. The sales for Nvidia’s closely watched blockchain mining chip product, CMP series, failed to meet expectations coming in at $266 million. This underwhelming total was significantly lower than the $400 million company CFO Colette Kress predicted in May.
Nvidia launched the series of GPUs for Ethereum miners earlier in the year. To combat blockchain miners hoarding GPUs meant for gamers, the company also introduced low hash rate GeForce GPUs with limited Ethereum mining capability to provide more supply inventory for the gamers.
Nvidia is in a period of sustained growth as semiconductors are in short supply worldwide, and demand for its processors skyrockets. The company warned that the COVID-related global GPU supply constraints could extend into 2022 as demand continues to outpace supply.
Speaking on Nvidia’s Q2 fiscal 2022 earnings call this week, Nvidia CEO Jensen Huang said he “would expect that we will see a supply-constrained environment for the vast majority of next year is my guess at the moment.” On the call, EVP and CFO Colette Kress added that Nvidia “expects a minimal contribution” from CMP sales in the future because of reduced mining profitability.
“It’s still early; we still have a whole half a year in front of us in our fiscal year to determine,” Kress declared. “But the focus should be that the company has the supply to meet its growth goals for both this year, second half, as well as next year.”
Shares of Nvidia went up more than 2% after they released the earnings report. And despite the global chip shortage, the company’s executives expect Nvidia would hit its growth targets for the coming quarters and into its next fiscal year.
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