Nvidia Corp. reported a record quarterly revenue and profit, propelled by demand for videogaming and cryptocurrency and despite a broad-based shortage of semiconductors.
The chipmaker on Wednesday posted net income for its most recent quarter of $1.91 billion, more than double the year-prior figure. Revenue rose 84% to $5.66 billion. Both profit and revenue exceeded expectations, according to analysts surveyed by FactSet.
Nvidia is the latest chip company to have enjoyed months of booming demand for computing power that has padded order books. The hot market has triggered shortages of some chips, affecting companies as varied as Apple Inc. and Ford Motor Co. and contributing to President Biden’s recent call for $50 billion to strengthen the U.S. semiconductor industry.
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Santa Clara, Calif.-based Nvidia, which last year became the U.S.’s biggest chip company by value, specializes in graphics processors that have flown off shelves as people flocked to videogaming for entertainment during the coronavirus pandemic. The way those graphic chips work has also made them popular for other applications, including performing artificial-intelligence calculations and mining cryptocurrencies, further inflating demand.