With $8.29 billion, Nvidia once again announced a new sales record for the 1st quarter of fiscal year 2023, which ran from February to April. Compared to the previous year, the group took 46 percent more, compared to the previous quarter it was still 8 percent. Profits, meanwhile, fell by $1.5 billion.
Failed ARM takeover costs $1.35 billion
However, this was not due to a worse margin on the products sold, which even rose slightly from 65.5 to 65.4 percent in the previous quarter, and costs did not explode either. The reason was that after the failed ARM takeover, the group had to leave the 1.25 billion US dollars deposited as security with the old and new ARM owner SoftBank when the purchase intention was signed. In total, the one-off charge amounts to 1.35 billion US dollars, the group explains.
Nvidia originally intended to acquire ARM for $44 billion. However, when it became foreseeable that even the supervisory authorities in the USA would veto them, both sides backed away from the plan.
As before, Nvidia will in the future discuss the licensing of the ARM technology to develop their own ARM-based products, a prominent example being the company's first own CPUs called Grace. They are expected in the first half of 2023.
NVIDIA: Sales and revenues since Q1/2006 (fiscal year) -4001.9446.1168.288Millions US dollar Q1/2006Q1/2007Q1/2008Q1/2009Q1/2010Q3/2011Q1/2012Q1 /2013Q3/2014Q3/2014Q1/2015Q3/2016Q1/2017Q1/2017Q3/2018Q1/2019Q1/2019Q1/2020Q1/2021Q1/20222Q3/2022Q1/2023
- Revenue
- Net Profit
Data center overtakes gaming
In the first quarter of the 2023 fiscal year, the data center and gaming divisions were the revenue drivers. The data center division was up 83 percent compared to the first quarter last year and 15 percent compared to the most recent quarter, while gaming was up 31 percent and 6 percent, respectively. With a turnover of 3.75 to 3.62 billion US dollars, Data Center is now ahead of gaming.
The Automotive and Robotics division declined again at a low level, falling 10 percent to USD 138 million compared to the previous year and the previous quarter. Nvidia continues to see a significant growth factor for the future in this segment.
Ukraine war and Covid lower the forecast
For the current second quarter, which extends from May through July, Nvidia expects sales of 8.1 billion US dollars. This includes a $500 million negative impact from the suspension of operations in Russia and impacts on global supply chains from the Covid lockdowns in China. Without this factor, Nvidia would have expected the next quarter of record sales for the second quarter of the fiscal year 2023. The company's shares fell by 8 percent in after-hours trading as a result of the clouded outlook.