Nvidia posted revenues of $3.08 billion for the primary quarter ended April 26, up 39% from a 12 months earlier. The revenues beat expectations, and earnings per share of $1.80 additionally blew previous expectations as datacenter revenues from synthetic intelligence and the cloud grew.

Santa Clara, California-based Nvidia makes graphics processing items (GPUs) that can be utilized for video games, AI, and datacenter computing. While many companies have been hit onerous by the pandemic, Nvidia has seen a lift in these areas.

Datacenter income was $1.14 billion, up 80% from a 12 months earlier. Gross revenue margins, or the revenue on merchandise offered, had been 65.1%, a brand new report and significantly better in comparison with 58.4% a 12 months earlier.

A 12 months in the past, Nvidia’s revenues for the primary quarter had been $2.22 billion. Analysts anticipated income of $Three billion and non-GAAP earnings per share of $1.68. EPS got here in at $1.80 on a non-GAAP foundation, up 105% from 88 cents a 12 months earlier. Nvidia’s inventory is down 1% in after-hours buying and selling to $347.62 a share.

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During the quarter, Nvidia accomplished its $7 billion acquisition of Mellanox Technologies, a maker of key applied sciences for connecting its chips in datacenters. Nvidia additionally mentioned that final week’s GPU Technology Conference keynote speech of CEO Jensen Huang was seen 3.eight million occasions within the first three days, and that greater than 55,000 registrants participated within the online-only occasion.

Huang mentioned in an announcement that the corporate salutes the primary responders, well being care staff, and repair staff who’re combating COVID-19, and he additionally thanked scientists for engaged on discovering a vaccine. Nvidia’s GPU know-how is aimed toward serving to such scientists do their work sooner, and Nvidia has made donations on that entrance to assist with the trouble.

To assist its personal workers, Nvidia additionally moved raises ahead by six months to ensure workers can alter to the hardships of the pandemic. Huang mentioned Nvidia workers have donated $10 million to struggle the coronavirus.

Last week, Nvidia launched its Ampere-based A100 GPU, an unlimited AI chip with 54 billion transistors and a design primarily based on a brand new technology of AI know-how.

Nvidia reports $3.08 billion in Q1 2020 revenue, up 39% as AI and cloud soar

Above: Nvidia’s A100 chip has 54 billion transistors.

Image Credit: Nvidia

For the second fiscal quarter that ends on the shut of July, Nvidia expects income of $3.65 billion and gross revenue margins of 58.6% on a GAAP foundation and 66% on a non-GAAP foundation.

Game trade revenues for Nvidia’s chips  was $1.34 billion, up 27% from the identical interval a 12 months earlier. Big titles akin to Minecraft might assist push ahead adoption of Nvidia’s RTX real-time ray tracing know-how, which provides laptop photographs significantly better shadow and lighting results. More than 100 new laptops are utilizing Nvidia GeForce GPUs with RTX know-how.

Datacenter income of $1.14 billion was up 80% from a 12 months earlier. Professional visualization revenues had been $307 million, up 15% from a 12 months earlier. Automotive income was $155 million, down 7% from a 12 months earlier.

Colette Kress, chief monetary officer at Nvidia, mentioned in an announcement that COVID-19 challenges created provide chain delays early within the quarter. Shelter-in-place guidelines in China pressured the closure of shops and web gaming cafes, hurting gross sales of gaming merchandise there. But work-from-home additionally drove a surge in demand for each gaming and business computer systems as firms outfitted workers with work instruments.

Automotive “informatainment” and autonomous automotive spending is predicted to say no for the subsequent a number of quarters. Graphics chip income was $1.17 billion, up 25% from a 12 months in the past.