Nvidia Posts Huge Earnings Beat! What’s Next?

By Staff of Admiral Markets

Access To Financial Markets Made Easy • Nov 19, 2020 at 3:44 AM EST

All eyes are on Nvidia's (NVDA) share price as the company reported earnings and revenue that beat analyst expectations and recorded a 57% increase in sales.

All eyes are on Nvidia's (NVDA) share price as the company reported earnings and revenue that beat analyst expectations and recorded a 57% increase in sales.

Nvidia posts huge earnings beat! What's next?

Earnings per share of $2.91 vs $2.57 expected.
Revenue of $4.73 billion vs $4.41 billion expected.
Revenue up 57% from the same period last year - a record for the company.

Nvidia's graphics processing units have been in hot demand as they become essential components for computer console makers, gaming, autonomous driving, artificial intelligence and many other sectors. The bullish quarter was mainly driven by a 146% increase in its computer and networking division.

However, the company did report that its data center revenue is likely to decline in the current quarter driven by one of its Chinese customers deciding not to purchase one of its networking products. Investors will now be focused on the regulatory approval of Nvidia's plan to buy ARM from SoftBank for $40 billion - a company that supplies technology to most of Nvidia's competitors.

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