Nvidia (NASDAQ: NVDA) shares dropped after hours despite the semiconductor firm reporting fourth-quarter results that topped expectations.
Led by Jensen Huang, Nvidia announced that it made $1.32 per share of $7.64 billion of revenue for the period that ended on January 30. Revenue comes from Gaming, Data Center and Professional Visualization reached a record in the time.
In the year, gaming revenue grew 37% yearly at $3.42 billion, and data center revenues jumped 71% over the same period to $3.26 billion. In addition, revenue from professional visualization increased 109% compared to the previous year, reaching $643 million.
Most Wall Street analysts expected Nvidia to make $1.22 per share and bring in $7.43 billion of revenue.
Nvidia shares dropped over 2% during trading after hours to $259.39.
In the first quarter of the year, Nvidia said it expects revenues of $8.1 billion, or more and minus 2 percentage points accounting for GAAP, non-GAAP gross margins being 65.2 percent and 67%, respectively, less or equal to 50 basis points. Analysts were anticipating $7.29 billion in sales for the first quarter.
It expects GAAP operating expenses for the period at $3.55 billion, with $1.36 billion of the Arm-related write-off.
The company will conduct an open conference call at 5:30 p.m. ET to discuss the company’s results.
The following day, Nvidia announced it had signed an agreement in partnership with Jaguar Land Rover to provide software for vehicles of the future.