Graphics and data center chipmaker Nvidia (NVDA) announced Q1 fiscal 2020 earnings after the bell on Thursday, beating analysts’ expectations.
The company reported revenue of $2.2 billion, in line with analysts’ expectations. That’s well off of the $3.2 billion the company pulled in during the same quarter in 2019.
Earnings per share came in at $0.88 versus analysts’ estimates of $0.81 per share. In Q1 2019, the company saw earnings of $2.05 per share.
The stock is up 6% in after hours trading.
Nvidia’s recent troubles are tied to two major trends, the slowing Chinese economy and, more recently, tariffs, as well as an inventory overhang caused by a decrease in gaming graphics card sales.
Sales of cards were on fire in 2017 and early 2018 due to the rise of cryptocurrency miners. But as graphics cards have fallen out of favor with miners, Nvidia’s sales of plummeted, leaving inventory unmoved. That, though, is finally clearing up.
Nvidia has made a significant push into the artificial intelligence and machine learning industries thanks to its data center processing technologies, but the company still relies primarily on its gaming business for more than half of its revenue.
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