NVIDIA announced the results of the past quarter, which turned out to be extremely impressive. Lifestyle changes caused by the coronavirus pandemic have triggered a significant increase in demand for gaming and server equipment, which the company managed to turn into profit growth: NVIDIA ended the third quarter with a record revenue of $ 4.73 billion, which is higher than the same period last year by 57% and last quarter’s figure – by 22%.
Computing and networking products showed the greatest rise among NVIDIA business lines. This segment brought the company $ 1.9 billion, which exceeds the result of a year ago by 162%. However, NVIDIA’s traditional graphics business also grew noticeably: revenue from GPU sales increased by 25% compared to last year and reached $ 2.79 billion.
Separately, NVIDIA CEO Jensen Huang noted his gaming products. Revenue from the sale of solutions for gamers amounted to $ 2.27 billion, which is 37% more than last year and sets another record for this direction. This result, according to the head of the company, is primarily associated with the launch of the Ampere generation gaming accelerators to the market, which aroused phenomenal interest from gamers. Despite the fact that there is a clear shortage of new GPUs in the market, NVIDIA was able to increase revenue from the sale of gaming solutions by 37%, including in quarterly terms, and promised further revenue growth in this area in the next three months.
“NVIDIA is at full throttle, making record strides in gaming, datacenter, and more“, – said Jensen Huang. “The new GeForce RTX cards provide the biggest leap from generation to generation, and the demand for them is huge. Plus NVIDIA RTX has made ray tracing the new standard in gaming.“. Along the way, the head of the company did not fail to note that the release of the GeForce RTX 30 series video cards had a positive effect on the entire PC market, since it provoked a noticeable increase in demand on it.
Last quarter, NVIDIA’s datacenter revenues surpassed graphics revenue for the first time, driven in part by the completed acquisition of Mellanox. But in the third quarter, thanks to Ampere, the situation returned to its usual course – NVIDIA again became a company for which the graphics business plays a major role.
It should be added that industry analysts were expecting tremendous success from NVIDIA in the third quarter, but the company was able to surpass the most daring forecasts with its revenues. However, this did not save the stock from a slight dip after the announcement of financial results, as NVIDIA warned of a possible drop in server revenue towards the end of the year, which alerted investors. The revenue forecast for the next quarter was $ 4.8 billion.
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