Risk, returns & timeframes illustration
1 min read
June 1, 2022
by

Nvidia’s stacking chips!

While the world’s battered by inflation, a couple of monster chip manufacturers are oiling up the industry with a fresh batch of gaming chips. But it’s not just chips stacking up, looks like Nvidia’s revenue has levelled up too.
Risk, returns & timeframes illustration
1 min read
June 1, 2022
by

Nvidia’s stacking chips!

While the world’s battered by inflation, a couple of monster chip manufacturers are oiling up the industry with a fresh batch of gaming chips. But it’s not just chips stacking up, looks like Nvidia’s revenue has levelled up too.
Table of contents
Free Getting Started Course
Take your first, or next, step to becoming a confident investor with Hatch's free online course – just 10 minutes a day, for 10 days.
Weekly news from Wall St
Subscribe to The Fry Up - your weekly sizzle of headline-grabbing share market news. Read by 60,000 Kiwis to help them take charge of their investing journey.

Remember last year when it seemed like no one could get hold of silicon chips? Well things are finally starting to ease, at least when it comes to gaming chips. 🎮 Nvidia (NVDA), aka Team Green, says their supply of high-spec graphics cards is normalising thanks to the company’s big push to increase manufacturing and get ahead of the chaos of supply chain disruption. Rival chip maker AMD (AMD) aka, Team Red, is also starting to stack up the chips. And while the price of our beloved fish ‘n’ chips is getting battered by inflation, the re-stock means prices for gaming chips are finally starting to fall down

That could be partly thanks to the recent crypto turmoil, which has cooled demand for high-powered GPUs (graphics processing units) used to mint new virtual currencies. That’s music to the ears of PC gamers looking to level up. Meanwhile their console playing brethren are being forced to battle evil bots in real life just to get their hands on the latest PS5 and Xbox consoles. 🤖

While their stock is down nearly 44% this year, Nvidia’s results last week showed they’re stacking revenue. The company reported a monster 46% increase in quarterly revenue over the same period in 2021, rendering a record US$8.29 billion. Gaming revenue, which comes from selling high-spec graphics cards to keen gaming nerds, was up 31%, while demand for cloud computing pushed revenue from data centres up an overclocked 83%.

All that revenue is helping Nvidia stack something else too, cash. 💸 Cash jumped to over US$20 billion from US$12 billion  last year. And with Nvidia’s offer to buy chip designer Arm off the table, more of that cash will be winging its way back to investors in the form of an extended share repurchase program. Just don’t spend it all on fish ‘n’ chips at once! 🐟

We’re not financial advisors and Hatch news is for your information only. However dazzling our writing, none of it is a recommendation to invest in any of the companies or funds mentioned. If you want support before making any investment decisions, consider seeking financial advice from a licensed provider. We’ve done our best to ensure all information is current when we pushed ‘publish’ on this article. And of course, with investing, your money isn’t guaranteed to grow and there’s always a risk you might lose money.

Join the Kiwis who are hatching their tomorrow and have invested more than $1 billion with Hatch.

More recent news articles

More recent learn articles

6 min read
Nov 28, 2023

Black Friday’s record-breaking US$9.8 billion US online sales, US$70.9 billion globally

New Zealand imported Black Friday from the US, but that doesn’t mean we’re spending up large during tighter economic times. While Black Friday spending soared in the US, it seems Kiwis weren’t quite so keen to part with their hard-earned cash. So who was spending up large in record US Black Friday shopping?
Read more
6 min read
Nov 21, 2023

Underrated Thanksgiving stocks and hopes for a seasonal market rally

While 2023 may have felt like a bumpy ride for investors it seems that recession predictions were stymied by a buoyant American economy. Could the road ahead bring in fresh optimism echoing rallies of holidays past?
Read more
5 min read
Nov 14, 2023

Affirm shares surged 24% ahead of holidays splurge

In a world of instant gratification, is buy now pay later (BNPL) just what we do now? While BNPL providers aren't rapidly bringing on more customers and people aren’t using BNPL more, shoppers are missing more payments sinking into a debt cycle helping providers’ revenue to climb. Is this why Affirm’s stock has soared 153% this year?
Read more

More recent news articles

More recent learn articles

6 min read
Nov 28, 2023

Black Friday’s record-breaking US$9.8 billion US online sales, US$70.9 billion globally

New Zealand imported Black Friday from the US, but that doesn’t mean we’re spending up large during tighter economic times. While Black Friday spending soared in the US, it seems Kiwis weren’t quite so keen to part with their hard-earned cash. So who was spending up large in record US Black Friday shopping?
Read more
6 min read
Nov 21, 2023

Underrated Thanksgiving stocks and hopes for a seasonal market rally

While 2023 may have felt like a bumpy ride for investors it seems that recession predictions were stymied by a buoyant American economy. Could the road ahead bring in fresh optimism echoing rallies of holidays past?
Read more
5 min read
Nov 14, 2023

Affirm shares surged 24% ahead of holidays splurge

In a world of instant gratification, is buy now pay later (BNPL) just what we do now? While BNPL providers aren't rapidly bringing on more customers and people aren’t using BNPL more, shoppers are missing more payments sinking into a debt cycle helping providers’ revenue to climb. Is this why Affirm’s stock has soared 153% this year?
Read more