Nvidia’s Q4 Earnings: One Deal You May Have Missed

Nvidia (NASDAQ: NVDA) dropped the names of some Big Tech players in last night’s earnings report, including ongoing partnerships with Amazon Web Services (AWS), Microsoft, and even different technologies they’re working on with Block (formerly Square), and Snapchat.

But the big deal is with Meta.

Big Tech Gets Bigger

Nvidia’s showing why it deserves to be up there with the largest companies in the world with strong double-digit growth and even triple-digit increases across primary segments.

Here are the quick highlights for Nvidia’s Q4 results in case you missed it:

  • Revenue increased 53% year-over-year (YoY) to $7.64 billion
  • Gaming revenue grew 37% YoY to $3.42 billion
  • Datacenter revenue grew 71% YoY to $3.26 billion
  • Professional visualization increased 109% YoY to $643 million
  • Crypto-related GPUs brought in $24 million in Q4

So what’s the deal with Meta? Nvidia recently passed the social media giant in market capitalization, but it was made apparent in last night’s earnings that the pair will work closely together.

The GPU leader will provide the infrastructure for Meta to fulfill its metaverse ambitions. The deal consists of 16,000 Nvidia A100 GPUs, 6,000 of which are already up and running, all in an effort to build out Meta’s AI supercomputer, SuperCluster. A single base version of one of these GPUs can cost upwards of $10,000, so this could provide an immense boost to Nvidia’s continued revenue growth — hundreds of millions, if not billions from a single customer.

This latest deal is just one of many; Google already transitioned over to A100’s just last year for its Cloud and they’re now fully operational. If we rewind back just a couple of years, gaming was Nvidia’s bread and butter, but it’s flipping the narrative. It’s not a gaming company anymore, it’s becoming a main player at the forefront of AI.

Market AnalysisNvidia
David GranahanDavid Granahan
  • David Granahan
  • Financial Writer at MyWallSt

  • David’s favorite stock is Google. He’s a daily user of its YouTube platform, where you can learn or find something brand new at the touch of a button. He believes the company will continue to grow for many years to come.

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