Nvidia beat expectations in the fourth quarter

Nvidia posted a strong outlook for the current quarter, beating analysts' expectations for fourth-quarter revenue and sales figures. The chip giant's last quarter figures from the end of January were $1.32 billion in net profit and $7.64 billion in revenue. After these figures, the company, which announced its 2022 first quarter revenue expectation, exceeded the analysts' expectations with 8.1 billion. Nvidia CEO Jensen Huang said in a statement that the company's chips for artificial intelligence and processing-intensive applications are in extraordinary demand. Huang also touched upon the supply constraints Nvidia experienced and noted that they expected to see a significant increase in this issue in the second half of 2022. The company, whose shares rose significantly in 2021, then experienced a 10 percent decline as investors sought safer investments in an inflationary environment.

Cloud services and gaming industry revenues came to the fore

Cloud services and startups' turn to GPUs for AI-based applications such as option proposition and language analysis contributed significantly to the chipmaker's revenue growth. Nvidia increased its data center business sales by 71 percent year-on-year to $3.26 billion. While the gaming industry still stands out as the company's largest market, the GeForce graphics processor is considered one of the most ideal chips for gaming. In the data released by the company, the game industry, led by GeForce, increased its sales by 37 percent on an annual basis, reaching $3.42 billion. While referring to the measures taken regarding the chip crisis, Nvidia emphasized that almost all of the chips it produces are shipped with software that will prevent them from being used in cryptocurrency mining, and that miners should buy a different chip specifically for this area. The company stated that it has long-term supply commitments of 9 billion dollars in total for the following periods. This figure was $2.54 billion in 2021. In a meeting with analysts, Jensen Huang said, "We expect supply to improve at an increasing rate in each coming quarter.”