NVDA Q4 2022: Earnings Call Summary

Below is an example response of our MLQ Earnings project where we built a GPT-enabled earnings call assistant. In particular, we fine-tuned GPT-3 on Nvidia's Q4 2022 earnings call transcript to answer factual questions about the call. This call was in February 2022.

Below are the responses from the fine-tuned GPT-3. As always, none of this is financial advice, do your own research, and see our full terms and conditions for more.

Revenue

Provide key information about revenue for the quarter:

Revenue for the quarter was $7.6 billion, up 53% year-on-year. Gaming revenue was $3.4 billion, up 6% sequentially and 37% from a year earlier. Full year revenue was a record $26.9 billion, up 61% from the prior year. Laptop gaming revenue also set a record, driven by the ramp of the new GeForce RTX 3070 Ti and 3080 GPUs. Desktop revenue was led by growth in GeForce RTX 30 Series products. All in, over 160 new laptop designs were announced for NVIDIA and tier architecture RTX 30 Series GPUs.

Profitability

Provide key information about profits (P&L) for the quarter:

For the first quarter of fiscal 2023, revenue is expected to be $8.1 billion, plus or minus 2%. GAAP and non-GAAP gross margins are expected to be 65.2% and 67%, respectively, plus or minus 50 basis points. GAAP operating expenses are expected to be $3.55 billion, including the Arm write-off of $1.36 billion. Non-GAAP operating expenses are expected to be $1.6 billion. GAAP and non-GAAP other operating, other income and expenses are both expected to be an expense of approximately $55 million, excluding gains and losses on nonaffiliated investments. Non-GAAP tax rate are expected to be 11% and 13%, plus or minus 1%, excluding discrete items.

Industry Trends

Provide key information about industry trends for the quarter:

The semiconductor industry is currently facing tight supply, which is reflected in the inventory purchase obligations that have seen greater than 30% sequential growth for the past four quarters. This quarter, the number is expected to eclipse the quarterly revenue guidance. The growth is primarily driven by data center, with gaming and automotive also expected to see some growth. The industry is working to improve the supply situation for future quarters.

Gaming

Provide key information about gaming discussed on the call

Gaming is expected to contribute to sequential growth in the first quarter of fiscal 2023. Colette Kress mentioned that revenue is expected to be $8.1 billion, plus or minus 2%. Additionally, GAAP and non-GAAP gross margins are expected to be 65.2% and 67%, respectively, plus or minus 50 basis points. Lastly, Colette Kress mentioned that there will be an upcoming virtual Investor Day on March 22, alongside the GPU Technology Conference, which will follow Jensen's opening keynote.

GPUs

Tell me about times that GPUs were discussed on the call

On the call, it was discussed that NVIDIA's ecosystem of NVIDIA-certified systems expanded with Cisco and Hitachi joining Dell, HewlettPackard Enterprise, Insper, Lenovo and Supermicro. It was also mentioned that their networking products posted strong sequential and year-over-year growth, driven by exceptional demand across use cases ranging from computing, supercomputing and enterprise to storage. Additionally, it was mentioned that they are still early in the software revenue ramp and that their pipelines are building as customers across the industry seek to accelerate their pace of adoption and innovation with NVIDIA.

AI

Provide key information about AI discussed on the call. Provide 3-5 sentences on this.

NVIDIA has been working to broaden the reach and ease the adoption of NVIDIA AI into vertical industries. They have released version 1.1 of their NVIDIA AI Enterprise software, allowing enterprises to accelerate annual workloads on VMware, on mainstream IT infrastructure. They have also expanded the number of system integrators qualified for NVIDIA AI Enterprise. Forrester Research has recognized NVIDIA in the top category of leaders in their evaluation of Enterprise AI infrastructure providers. Deloitte, a leading global consulting firm, has built its center for AI computing on NVIDIA DGX Superpod. At CES, NVIDIA extended their collaboration to AV development, leveraging their own robust AI infrastructure and Deloitte's team of 5,500 system integration developers and 2,000 data scientists to architect solutions for intelligent transportation.

Data Centers

Provide key information about data centers discussed on the call:

Colette Kress discussed that there are still some supply constraints across some of the businesses in the Data Center business, but they are improving every day. She also mentioned that they expect to improve supply each quarter as they enter into fiscal year '23. Toshiya Hari asked about Data Center growth on a year-over-year basis and Colette mentioned that they expect hyperscale cloud to grow more than 2x and enterprise verticals to grow strong double digits in the January quarter. Visibility into the second half of the fiscal year was not discussed on the call.

Mergers & Acquisitions (M&A)

Provide any information about the acquisition of Arm discussed on the call:

NVIDIA attempted to acquire Arm in September 2020, believing that it would accelerate Arm's focus on high-performance CPUs and help Arm expand into new markets. However, the transaction spurred questions from regulators worldwide and NVIDIA was unable to give regulators the comfort they needed to approve the deal. NVIDIA's work in accelerated computing and overall strategy will continue as before, and they are on track to launch their Arm-based CPU targeting giant AI and HPC workloads in the first half of next year. They also have a 20-year architectural license to Arm's IP, allowing them the full breadth and flexibility of options across technologies and markets.

Guidance

Provide key information about guidance discussed on the call:

During the call, Colette Kress provided guidance for the first quarter of fiscal 2023. She stated that revenue is expected to be between $6.7 billion and $7.1 billion, with a midpoint of $6.9 billion. She also stated that non-GAAP gross margin is expected to be between 63.5% and 64.5%, with a midpoint of 64%. Lastly, she stated that non-GAAP diluted earnings per share is expected to be between $3.45 and $3.75, with a midpoint of $3.60.

Key topics discussed

Provide a list of data labels related to key topics from the call:

Hyperscale, public cloud, enterprise core, enterprise edge, large language models, transformers, conversational AI, customer service, chat bots, web-based, point-of-sale base, cloud-based, recommender systems, deep learning-based recommender systems, cloud graphics, rendering, simulations, cloud gaming, Android cloud gaming.

NVIDIA Q4 2022 announcement