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Santa Clara
Reality catches up with Nvidia: Nvidia “may be the chip company for the metaverse”, but even it “can’t escape the real world” at times, says Dan Gallagher in The Wall Street Journal. Financial results in the first quarter were “ahead of expectations”, at least in the key areas of video games and data centres, but its revenue forecast for the current quarter was about 4% less than Wall Street’s targets due to a projected “$500m hit” from lost sales in Russia and Covid-related manufacturing shutdowns in China. More generally, inflation and supply-chain issues appear to be catching up with Nvidia’s hitherto “booming” video-games business, which comprises nearly 50% of the firm’s revenues and has averaged 54% growth over the last eight quarters. Fortunately, the picture for its data-centre business is more rosy.
Revenue in this sector “surged” by 83% year
