For the first quarter, ending on April 26, Nvidia posted revenues of $3.08 posted revenues of $3.08 billion. It is thus up 39% from a year earlier. The revenues beat analysts’ expectations. As datacenter revenues from Artificial intelligence and the Cloud grew, and earnings per share of $1.80 also blew past expectations.
California-based Nvidia Santa Clara makes GPUs (graphics processing units) that can be helpful for data centre computing, games, and artificial intelligence. Moreover, Nvidia has seen a boost in those areas, while the pandemic has walloped many businesses.
Nvidia completed its $7 billion acquisition of Mellanox Technologies during the quarter. This company is a maker of critical technologies to connect its chips in data centres. Jensen Huan is the CEO of Nvidia. Nvidia said that in the first three days, last week’s GPU Technology Conference keynote speech of Huan was viewed 3.8 million times. Moreover, more than 55,000 registrants participated in the online-only event.
In a statement, Huang thanked and congratulated the first responders, service workers, and health care workers who are fighting COVID-19. Moreover, he thanked the scientists who are working to find a vaccine. Nvidia’s GPU technology aims to help these scientists to accomplish their work faster. Furthermore, Nvidia has made donations on that front to help with the effort.
Nvidia gave many of their employees raises to help at this time. That was done to make employees can adjust to the hardships of the pandemic. Huang said that employees at Nvidia had donated around $10 million to fight the coronavirus.
Nvidia
Nvidia launched its Ampere-based A100 GPU last week.
That is a large artificial intelligence chip with 54 billion transistors. Its design is based on a new generation of artificial intelligence technology.
The second fiscal quarter ends at the close of July. Thus, for that time, Nvidia is expecting a revenue of $3.65 billion. Moreover, Nvidia expects gross profits margins of 58.6% on a GAAP basis and 66% on a non-GAAP basis.
That is up 27% from the same period a year earlier. The game industry revenues for Nvidia’s chips was $1.34 billion. Minecraft and other big titles could help to push forward the adoption of real-time ray tracing technology of Nvidia’s RTX. That gives computer images much better lighting and shadow effects. Thus, more than 100 new laptops use RTX technology with Nvidia GeForce GPUs.
Data centre revenue of $1.14 billion was up 80% from the previous year. That is up 15% from a year earlier. Professional visualization revenues were $307 million. Nonetheless, it is down 7% over the previous year. Furthermore, automotive revenue was $155 million.
Colette Kress is a chief financial officer at Nvidia. She said, in a statement, that within the quarter, challenges caused by COVID-19 created supply chain delays. Rules to remain indoors in China forced the closure of intermitting gaming cafes and retail outlets. Thus, it has hurt the sales of gaming products in China. Nevertheless, at-home work drove a surge in demand for both commercial and gaming computers. That is because companies were equipping employees with work tools.
For the next several quarters, autonomous car and automotive “infotainment” spending are forecasted to decline. That is up 25% from a year ago, where graphics chip revenues were at $1.17 billion.
Let us hope that company will be successful and help scientists to find a vaccine for COVID-19.
