Nvidia’s (NVDA) graphics cards aren’t just a gamer’s paradise but a stealthy competitor in the data center space – according to the company’s Q3 earnings. The US-based graphics-chips manufacturer reported a 50% rise in Q3 sales, reaching $7.1b and posting a net income of $2.5b.
The main driver came from its gaming graphics cards segment, which recorded $3.2b in sales, and a significant 55$ YoY uptick in its data-center chips segment. The strong results come despite a global semiconductor chips shortage – testament to Nvidia’s carefully planned long-term supply agreements. The company made $1.6b in advance payments in Q3 to secure inventory well in advance, causing supply-chain issues to have a limited impact on the firm’s figures. With its core business performing well, Nvidia’s starting to stretch into new markets – the company announced its venture into CPU-manufacturing for data centers this year to rival Intel (INTEL).
Why it matters
The semiconductor shortage is forcing firms in the silicon space to experiment and expand into new business lines. Nvidia’s recent push into data centers seems to have paid off and investors are happy. The company’s stock closed off yesterday at an 8.3% rise.
