The graphics chip (GPU) manufacturer NVIDIA Corp. (NVDA) issued its report for the third quarter of the fiscal year 2021 after the close of trading session on last Wednesday. The business has hit record levels all because of an additional growth driven by the COVID-19 pandemic.
NVIDIA’s revenues rose 57 percent year-on-year to $4.73 billion in the quarter ended October 25, 2020. Net GAAP revenue grew 49 percent to $1.34 billion. After adjustments, earnings per share increased 63 percent to $2.91.
In the video game and data centre solutions market the company gained strong positive momentum. The COVID-19 crisis has caused many individuals to stay at home working remotely, and one of the few sources of entertainment available has been video games.
Other markets, such as automotive solutions, started to recover and nearly returned to pre-coronavirus levels in the third quarter. Some supply chain problems still remain, but the business of NVIDIA continues to expand at a high pace.
Announcing the acquisition of the Arm Holdings company for $40 billion came as one the major moves by NVIDIA in the reported quarter. But the company came on facing pressure factors emerging in certain areas. AMD has released new video cards for gamers in particular, and Amazon is moving to use its own AI application chips. But buying Arm would give NVIDIA’s earnings an immediate boost and provide access to a big processor market.
NVIDIA expects sales of $4.8 billion in the fourth quarter, with a GAAP income of $55 million.
After release of the quarterly results, NVIDIA Corp. (NASDAQ: NVDA) stock remain gradually losing in the past 5 sessions. Company’s share price which was $537.15 on November 18, has dropped to $518.31 at ring of the bell on November 24 losing -1.39% on the day and -3.46% over the week. However, the stock is up more than 120 percent since start of the year.