Home PC News Nvidia beats Q2 2020 expectations with revenue up 50% to $3.87 billion

Nvidia beats Q2 2020 expectations with revenue up 50% to $3.87 billion

Nvidia posted revenues of $3.87 billion for the second fiscal quarter ended July 26, up 50% from a yr earlier. The revenues beat expectations, and non-GAAP earnings per share of $2.18 additionally trounced expectations as gaming {hardware} and AI remained in excessive demand through the pandemic.

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 exhausting by the pandemic, Nvidia has seen a lift in these areas.

For the second fiscal quarter, analysts anticipated income of $3.65 billion and non-GAAP earnings per share of $1.97.

Gross revenue margins, or the revenue on merchandise bought, had been 66%, in comparison with 60.1% a yr earlier. Nvidia’s revenues for the primary quarter had been $3.08 billion, up 39% from a yr earlier.

Datacenter income was $1.7 billion, up 167% from a yr earlier. Gaming revenues had been $1.65 billion, up 26% from a yr in the past. Professional visualization was $203 million, down 30% from a yr in the past. Automotive income was $111 million, down 47%. Other income was $146 million, up 32%. Overall graphics was $2.08 billion, up 16%, whereas CPU and networking income was $1.78 billion, up 130%.

Nvidia’s inventory is down 0.7% in after-hours buying and selling to $482.55 a share.

Earlier this yr, Nvidia accomplished its $7 billion acquisition of Mellanox Technologies, a maker of key applied sciences for connecting its chips in datacenters. Mellanox income is included within the CPU and networking section.

Jensen Huang, CEO of Nvidia, mentioned in an announcement, “Adoption of Nvidia computing is accelerating, driving record revenue and exceptional growth. Growth in GeForce gaming accelerated as gamers increasingly immerse themselves in realistic virtual worlds created by Nvidia RTX ray tracing and AI.”

He added, “Our new Ampere GPU architecture is sprinting out of the blocks, with the world’s top cloud service providers and server makers moving quickly to offer Nvidia accelerated computing. Mellanox grew sharply, driven by the need for high-speed networking in cloud data centers to scale-out AI services.”

And he mentioned, “Despite the pandemic’s impact on our professional visualization and automotive platforms, we are well-positioned to grow, as gaming, AI, cloud computing and autonomous machines drive the next industrial revolution around the world.”

Back in April, 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's A100 chip has 54 billion transistors.

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

Image Credit: Nvidia

For the second fiscal quarter, Nvidia itself anticipated income of $3.65 billion and gross revenue margins of 58.6% on a GAAP foundation and 66% on a non-GAAP foundation.

Nvidia is anticipated to unveil its high-end desktop GPUs primarily based on Ampere at its occasion scheduled for September 1. Nvidia can be rumored to be contemplating a bid for Arm, which Japan’s SoftBank has reportedly put up on the market.

Nvidia chief monetary officer Collette Kress mentioned in an announcement that COVID-19 continues to have an effect on the enterprise, with workers working from residence. Customers in industries equivalent to training, analysis, vitality, automotive, manufacturing, structure and media have been hit exhausting. Each is recovering however at completely different charges, Kress mentioned.

For the third fiscal quarter that closes on the finish of October, Nvidia expects income of $4.Four billion, plus or minus 2%. It expects non-GAAP gross margins of 65.5%.

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