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Nvidia reported revenues of $6.51 billion for its second fiscal quarter ended Auguts 1, up 68% from a year earlier. Gaming revenue grew 85% to $3.06 billion. The numbers were above Wall Street’s expectations.
Nvidia reported non-GAAP earnings per share of $1.04 on revenues of $6.51 billion, up 89% from EPS of 55 cents on revenue of $3.87 billion a year earlier.
The Santa Clara, California-based company makes graphics processing units (GPUs) that can be used for games, AI, and datacenter computing. While many businesses have been hit hard by the pandemic, Nvidia has seen a boost in those areas. The company saw record revenue in its gaming, datacenter, and professional visualization platforms.
GAAP earnings per diluted share for the quarter were 94 cents, up 276% from 25 cents a share a year ago. In after-hours trading, Nvidia’s stock is $190.67 a share, up 0.14%.
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Analysts expected Nvidia to report earnings for the July quarter of $1.02 a share on revenues of $6.33 billion. As mentioned, gaming came in at $3.06 billion and datacenter revenues were $2.37 billion, up 35%.
“Nvidia’s pioneering work in accelerated computing continues to advance graphics, scientific computing and AI,” said Nvidia CEO Jensen Huang in a statement. “Enabled by the Nvidia platform, developers are creating the most impactful technologies of our time – from natural language understanding and recommender systems, to autonomous vehicles and logistic centers, to digital biology and climate science, to metaverse worlds that obey the laws of physics.”
He called out new technologies such as Nvidia Base Command and Fleet Command for deploying AI at scale, as well as the Omniverse, the simulation platform for engineers that could enable physically realistic virtual worlds and the eventual “metaverse,” Huang said.
Huang will receive the chip industry’s highest honor, the Robert N. Noyce Award. Huang will receive the honor from his peers at the Semiconductor Industry Association (SIA) annual awards dinner on November 18. The award is named after Intel cofounder Robert Noyce, who is credited with numerous pioneering achievements at the dawn of the chip industry.
Nvidia has seen a boom in both gaming and datacenter revenues as users go online during the pandemic. Gamers have been snatching up graphics cards to play PC games, but a shortage of semiconductors has hurt companies like Nvidia, and cryptocurrency miners are also buying up the graphics cards.
Last year, Nvidia completed its $7 billion acquisition of Mellanox, which makes key technologies for connecting chips in datacenters. Mellanox revenue is included in the CPU and networking segment. But Nvidia is still waiting on regulatory approval for its $40 billion acquisition of Arm. Collette Kress, chief financial officer, said in an analyst call that the company is working on approvals, but it noted that some regulators had objected to the acquisition.
Datacenter revenues hit $2.37 billion, up 35% from a year earlier. Nvidia launched a variety of products in the quarter, and it said it is in 342 of the latest Top 500 supercomputers in the world. Nvidia said it foresees the growth rate accelerating for datacenter revenues. In an analyst call, Huang said that AI model parameters are doubling every two months, and that is driving a lot of growth for supercomputers and other AI hardware.
As noted, gaming revenue was $3.06 billion, up 85% from a year earlier and up 11% from the previous quarter. Nvidia launched its GeForce RTX 3080 Ti and 3070 Ti graphics cards in the quarter, giving gaming PCs a 50% boost in graphics performance over the prior generation. And Nvidia RTX (for better shadows and lighting) is now in 130 games and applications.
GeForce Now, Nvidia’s cloud gaming platform, now has more than 1,000 PC games. Kress said Nvidia is supply constrained for the gaming business in desktop and laptop products.
Nvidia in recent quarters has created low hash-rate cards are aimed at cryptocurrency miners so that they don’t buy the up all of the gaming graphics cards. Going forward, Nvidia expects minimal contribution to revenues from crypto mining cards.
Professio nal visualization
Professional visualization generated revenues of $519 million, up 156% from a year earlier and up 40% from the previous quarter.
Second-quarter automotive revenue was $152 million, up 37% from a year earlier and down 1% from the previous quarter. Nvidia announced during the quarter that the AutoX Gen5 robot taxi platform is using Nvidia Drive technology.
For the third quarter ending October 31, analysts expect earnings to be $1.04 a share on revenue of $6.53 billion. Nvidia said it expects revenue to come in at $6.80 billion, driven by accelerating growth in datacenter revenues. The company expects gaming demand to exceed supply, though gaming is expected to grow. For the full fiscal year, analysts expect Nvidia to report earnings of $3.95 a share on revenue of $24.9 biillion.
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