Nvidia retains on raking in income from chips for synthetic intelligence, sport graphics, the Nintendo Change sport console, and self-driving automobiles. However we’ll need to listen to the conference call to search out out if cryptocurrency mining additionally drove gross sales.
The world’s largest stand-alone maker of graphics chips and AI chips reported $2.2 billion in revenues for its second fiscal quarter, blowing previous Wall Road estimates.
Analysts had anticipated earnings of 70 cents a share on a GAAP foundation and quarterly income of $1.96 billion. Web earnings got here in at 92 cents a share, in contrast with 41 cents a yr in the past. Revenues a yr in the past have been $1.four billion.
One query is whether or not Nvidia’s earnings received a lift from cryptocurrency’s recognition, as rival Advanced Micro Devices cited the potential of demand for graphics cards from cryptocurrency miners. Cryptocurrency miners can use computing power to unearth new cryptocurrency.
Nvidia began in 1993 as one amongst dozens of graphics chip startups. It survived the competitors to turn into the only stand-alone graphics chip maker, competing straight with CPU makers Intel and Superior Micro Gadgets. It provides graphics chips for the Nintendo Change sport console, however a lot of its fortunes are actually tied to self-driving automobiles and synthetic intelligence. Its rivals additionally embody Qualcomm.
“Adoption of Nvidia [graphics process unit] GPU computing is accelerating, driving growth across our businesses,” mentioned Jen-Hsun Huang, founder and CEO of Nvidia, in a press release. “Data center revenue increased more than two and a half times. A growing number of car and robot-taxi companies are choosing our Drive PX self-driving computing platform. And in gaming, increasingly the world’s most popular form of entertainment, we power the fastest growing platforms — GeForce and Nintendo Switch.”
He added, “Nearly every industry and company is awakening to the power of AI. Our new Volta GPU, the most complex processor ever built, delivers a 100-fold speed up for deep learning beyond our best GPU of four years ago. This quarter, we shipped Volta in volume to leading AI customers. This is the era of AI, and the Nvidia GPU has become its brain. We have incredible opportunities ahead of us.”
Nvidia’s market worth is $98.5 billion, up dramatically previously few years due to rising enthusiasm for AI. Nvidia is forecasting income of $2.35 billion for the third fiscal quarter, which closes on the finish of October. The corporate’s inventory is down four.5 % in after-hours buying and selling, to $156.85 a share.
“Nvidia had a very solid quarter driven by big growth from gaming and data center,” mentioned Patrick Moorhead, analyst at Moor Insights & Technique, in an e mail. “Both Pascal-based GeForce, Tesla, and even Tegra are hitting on all cylinders in a rapidly growing market, all goodness for the company. The only real blemish came from a discontinuation of an expected Intel IP licensing agreement. Nvidia will start to see a bit more competition in the gaming and machine learning category in the next two quarters, but I expect the company to still have a sizable raw performance lead with Volta-based GPUs.”
This put up by Dean Takahashi originally appeared on VentureBeat.