Nvidia's 1Q Profit Surges During Pandemic

By Maria Armental

Graphics chip-making giant Nvidia Corp. reported first-quarter results on Thursday, offering an view into the impact of the coronavirus pandemic on its operations. Here's what you need to know.

PROFIT: Net income surged to $917 million, or $1.47 a share, from $394 million, or 64 cents a share, a year earlier. On an adjusted basis, profit rose to $1.80 a share from 88 cents a share a year earlier. Analysts surveyed by FactSet expected $1.39 a share, or $1.65 a share on an adjusted basis.

REVENUE: Revenue rose to $3.08 billion from $2.22 billion a year earlier. Analysts expected $2.98 billion, roughly in line with Nvidia's projection of about $3 billion. Gaming remains the largest revenue generator at $1.34 billion, but Nvidia's data center business saw an 80% increase in revenue to $1.14 billion.

OUTLOOK: This quarter, Nvidia projects about $3.65 billion in revenue, which includes the acquisition of Mellanox Technologies Ltd. Analysts expected $3.25 billion projection.

PANDEMIC: Among the steps Nvidia took during the pandemic, it released AI models in collaboration with the National Institutes of Health to help researchers detect Covid-19 in lung scans and joined the White House's Covid-19 High Performance Computing Consortium.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

May 21, 2020 16:51 ET (20:51 GMT)

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