Nvidia (NVDA 1.45%) reported revenue of $7.6 billion, up 53% year over year, and guided $8.1 billion for the upcoming quarter. Today's video focuses on Nvidia's earnings call and the major updates that the company shared with investors. Here are some highlights from the video.
- Nvidia announced that it would take a one-time hit of $1.36 billion during its upcoming quarter due to the failed Arm acquisition, which included a non-refundable fee. The fee has already been pre-paid and should not affect the company's cash flow.
- The chip shortage is heavily impacting companies like Nvidia. To combat the shortage, semiconductor companies place inventory orders many months in advance. Nvidia's outstanding inventory purchases and long-term supply obligations were $9 billion, up from $2.54 billion a year ago and up from $6.9 billion a quarter ago.
- During the earnings call, management reminded investors that it would be hosting a conference on March 22, and will present numerous new products and partnerships. Investors might get more insight during the conference on Nvidia's upcoming CPU, Grace, which is on target to be released later this year.
Click the video below for my full thoughts and analysis.
*Stock prices used were the pre-market prices of Feb. 17, 2022. The video was published on Feb. 17, 2022.