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Nvidia beats Q4 estimates on power of data center, gaming businesses

Nvidia (NVDA) reported its Q4 earnings after the bell on Wednesday, beating analysts' estimates on the top and bottom lines.

Here are the most important numbers from the report compared to Wall Street's expectations, as compiled by Bloomberg.

  • Revenue: $7.6 billion versus $7.42 billion expected

  • Adj. Eps: $1.32 versus $1.22 expected

  • Data Center: $3.26 billion versus $3.15 billion expected

  • Gaming: $3.42 billion versus $3.36 billion expected

  • Automotive: $125 million versus $152 million expected

Nvidia's shares were down 2% following the report.

"We are entering the new year with strong momentum across our businesses and excellent traction with our new software business models with NVIDIA AI, NVIDIA Omniverse and NVIDIA DRIVE," Nvidia CEO Jensen Huang said in a statement. "GTC is coming. We will announce many new products, applications and partners for NVIDIA computing."

Moving forward, Nvidia sees Q1 revenue of roughly $8.1 billion, beating analysts' estimates of $7.2 billion.

The chip maker's earnings announcement is its first since it called off its planned $40-billion acquisition of Arm earlier this month. The companies axed their deal due to mounting regulatory pressure both in the U.S., where the Federal Trade Commission filed suit to block the deal, and abroad.

Ahead of its earnings, Nvidia announced a new multi-year partnership with Jaguar Land Rover. The agreement will see Nvidia provide the automaker with AI-powered safety and autonomous driving technologies. According to Nvidia, the deal, the financials of which weren’t provided, will apply to all 2025 Jaguar Land Rover models and beyond.

What’s more, Nvidia says it will continue to provide software updates throughout the lifetimes of the vehicles. That’s an impressive feat given how long consumers hold on to their cars.

Nvidia’s failed Arm bid, meanwhile, hasn’t stung the company’s stock as some might have thought. That’s largely due to the enormous regulatory hurdles the company had to clear in order to move forward with the deal. In fact, some analysts, including Susquehanna senior equity analyst Chris Rolland predicted the deal would fall apart as far back as November.

Still, Nvidia is poised to continue dominating the AI server space thanks to its hardware and software prowess.

On the consumer side of things, Nvidia continues to grapple with the ongoing chip shortage, which has pushed prices of the company’s graphics cards well above their suggested retail prices. That crush, however, is unlikely to subside for Nvidia, or the wider chip industry, until sometime in 2023.

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Got a tip? Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley.