Nvidia in the red after reporting Q1 earnings

Nvidia reported quarterly earnings in which the company outperformed revenue and EPS expectations. The company posted $5.66B in revenue and an EPS of $3.66, outperforming the estimated revenue of $5.42B and estimated EPS of $3.31. Yahoo Finance's Dan Howley joined Yahoo Finance Live to discuss the key metrics.

Video Transcript

DAN HOWLEY: That's right. We had a huge blowout quarter for Nvidia, the strangely Q1 2022 quarter. They beat on both revenue and earnings per share. Let's give you a breakdown of revenue. $5.66 billion versus 4 point-- 5.42 expected. We had earnings per share of 3.66 versus 3.31. And then the gaming and data center businesses just blew up. We had 106% growth in the gaming business and then 79% growth in the data center business. The gaming business still the breadwinner. That had 2.76 billion versus 2.69 billion expected. But data center quickly gaining steam, obviously, 2.05 billion versus 2.0 billion expected.

And Jensen Huang said that they had just a fantastic quarter, and they saw strong demand for their products, driving record revenue. They're obviously going to have that four for one stock split. That's going to happen if they vote on it June 21. That would go into effect June 19 to begin trading on June 20. I don't know if you can see my cat next to me, but he's checking out the stocks. Then we also have some of the chip news. They're obviously impacted by some of the shortages. Nvidia has their large brands of gaming cards. Those are also being monopolized by chip makers. So Nvidia is taking moves to cut down on that by reducing the hash abilities of some of its cards to ensure that it gets into gamers' hands. So a lot of good news around there. I just really want one of those cards.