By Abrar Khan | May 27, 2022
Shares of Nvidia (NVDA 5.16%) were up 3.8% as of 11:26 a.m. ET on Thursday after the company delivered better-than-expected financial results for the fiscal first quarter (which ended May 1).
For the quarter, revenue grew 46% year over year. While it decelerated from the previous quarter's 53% growth rate, revenue of $8.29 billion beat expectations for $8.1 billion.
One of the biggest concerns from analysts going into the quarter was the health of Nvidia's gaming business. Gaming revenue has remained strong throughout the pandemic due to limited availability of inventory coupled with high demand.
After reporting growth of 37% in the previous quarter, the gaming segment remained strong, with revenue up 31% in the first quarter. Sales were driven by the GeForce RTX 30 series, which remains Nvidia's best gaming product cycle in history.
Data center remains on fire, with revenue soaring 83% year over year. The data center segment generated the highest amount of revenue for the company in the quarter, at $3.75 billion out of revenue across all segments of $8.3 billion.
Nvidia reported strong demand for its A100 graphics processing units (GPUs) from consumer internet companies, financial services, and telecom.