A record quarter for NVIDIA

NVIDIA's report beat Wall Street estimates, with earnings doubling and revenues rising 84%. Despite this and the company's strong outlook, NVIDIA shares have fallen as investors assess whether to expect much from its cryptocurrency mining chips.

NVIDIA (NVDA) shares, which have gained 84% in the last 13 months, fell almost 1% after the close of trading on Wednesday amid the company's release of its report for the first quarter of fiscal 2022, which ended on May 2 this year.

The largest chip maker by market capitalisation, with NVIDIA valued at $380 billion at the close of trading on Wednesday, reported record profits and earnings amid strong demand for chips and despite a global shortfall in semiconductor supply.

NVIDIA's earnings per share rose 103% year-over-year to $3.66, up $0.38 from analysts' estimates of $3.28.

Earnings rose 84% to $5.66 billion, which was also above the average analyst estimate of $5.41 billion.

NVIDIA forecast

NVIDIA said it expects second quarter revenue to grow to another record high of approximately $6.3 billion.

According to the company's CFO, NVIDIA continues to feel the effects of tight semiconductor supply and expects the shortfall to continue into the second half of the year.

The quarter under review was the first time NVIDIA has reported revenues from sales of CMP (Cryptocurrency Mining Processor) GPUs, announced in February, designed specifically for cryptocurrency mining.

Nvidia said these cryptocurrency chips brought in $155 million in the first quarter, with sales projected to rise to $400 million in the second quarter.

Gaming processors still Nvidia's most important sales segment, bringing in $2.76 billion in revenue in the first quarter, up 106% year-over-year.

NVIDIA's data centre chip sales also showed strong growth in the first quarter, up 79 percent.

The Professional Visualization segment, which includes sales of next-generation desktop workstation processors for AI and machine learning software, experienced a 21 percent revenue increase to $372 million.

Automotive segment Sales of automotive chips and software increased 6% quarter-over-quarter, but decreased 1% compared to the prior-year quarter to $154 million.