Nvidia Corporation (NASDAQ: NVDA) reported its fourth quarter and full year financial resultsfor fiscal year 2018. The company beat estimates in both revenue and earnings, sending shares 9 percent higher during Friday’s pre-market hours.
For the fourth quarter, Nvidia reported revenue of $2.91 billion, increasing 34 percent year over year, and beating analysts’ estimates of $2.69 billion. The company reported an EPS of $1.78, increasing 80 percent year over year, and beating analysts’ estimates of $1.17.
Nvidia’s gaming segment drove revenue once again, reporting in $1.74 billion in the fourth quarter, growing 29 percent year over year. Datacenter brought in the second highest revenue for Nvidia’s segments at $606 million, increasing 104 percent year over year.
Nvidia’s Volta GPUs strongly drove the datacenter segment as Huang said basically every internet and cloud service provider adopted its processor chips.
The processor chips are used predominantly for gaming purposes because they allow users to run applications at higher and optimal performances. Now, the processor chips are becoming more popular in cloud computing, AI processing and the recent cryptocurrency craze.
Nvidia CFO Colette Kress had said that Nvidia’s Tegra processor sales grew 75 percent year over year to $450 million due to sales of the Nintendo Switch.
“We achieved another record quarter, capping an excellent year,” said Jensen Huang, founder and chief executive officer of NVIDIA.
“Industries around the world are racing to incorporate AI. Virtually every internet and cloud service provider has embraced our Volta GPUs. Hundreds of transportation companies are using our NVIDIA DRIVE platform. From manufacturing and healthcare to smart cities, innovators are using our platform to invent the future,” Huang added.
Nvidia also began to send its autonomous driving partnerships into full speed. The company announced and demonstrated its Nvidia DRIVE Xavier, an autonomous machine processor. The company also announced its Nvidia DRIVE, a functionally AI self driving platform.
Nvidia is currently maintaining its partnerships with Uber, ZF, Baidu, Aurora and Volkswagen. The partnerships all revolve around self-driving technology.
For the full year, Nvidia reported revenue of $9.71 billion, increasing 41 percent year over year. The company reported an EPS of $4.92, increasing 61 percent year over year.
For 2018, Nvidia forecasts revenue to be $2.9 billion, plus or minus 2 percent. The company expects GAAP and non-GAAP operating expenses to be approximately $770 million and $645 million, respectively. Other income and expenses are expected to be nominal.