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

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Nvidia (NVDA) will report its Q4 earnings after the closing bell on Wednesday. The report is the company’s first since it announced it’s abandoning its planned $40 billion acquisition of chip designer Arm earlier this month.

Nvidia investors are likely to look toward continued growth from the company’s data center business, which is its second largest business outside of its gaming division. Here’s what Wall Street is expecting from the world’s richest chip manufacturer by market cap, and how it performed in the same quarter last year.

Revenue: $7.42 billion expected versus $5 billion in Q4 last year

Adj. Eps: $1.22 expected versus $3.10 in Q4 last year

Data Center: $3.15 billion expected versus $1.90 billion in Q4 last year

Gaming: $3.36 billion expected versus $2.49 billion in Q4 last year

Automotive: $152 million expected versus $145 million in Q4 last year

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.

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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.

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