Nvidia is enjoying an amazing gaming Q2 as its revenue increased 59 percent to $1.9 billion from a year earlier. This is a 52 percent year on year difference and up 15 percent from Q1 Financial 2018. The success is a mix of vibrant gaming ecosystem, successful GPU launches, accompanied by great games and growing interest in e-sports.
Nvidia quotes strong demands for Pascal based GeForce GTX 10 series as it has a good product mix at the moment.
The Max-Q thin gaming notebook design is gaining momentum with more than 20 notebook models coming from OEMs. Nvidia experienced higher GPU sales increased by demand from increased mining activity, Ethereum. Nvidia confirmed increased sales in both dedicated boards for this special market as well as some Geforce cards.
The Professional visualization, Quadro revenue grew $235 million, is up 10 percent from a year ago and up 15 percent sequentially. There is increased demand for high-end real-time rendering and for more powerful mobile workstations. Demand for professional graphics is especially strong in education and large public school districts, as well as in the financial sector and defense industry.
Back at Siggraph, Fudzilla witnessed the new OptiX 5.0 SDK that uses AI to accelerate ray tracing when running on its DGX rendering. The demo looks unlike anything we’ve seen before. The system was able to perform much faster than any other rendering platform. Nvidia claims that OptiX 5.0 SDK on DGX provides a rendering capability of 150 standard dual-CPU servers.
The professional visualization group also introduced eGPU system solution. The external graphics will address 25 million content creators using standard notebook PCs and let them add an external Titan Xp or Quadro GPU. You will be able to have a Mac OS user with Nvidia graphics - this is the nucleus of the product and you will have people with thin and light machines being able to do some serious rendering, editing and gaming on their Intel integrated notebooks.
Tegra processor revenue doubled to $333 million and these products went mainly to Nintendo or Automotive. OEM revenue reached $251 million, reflecting sales of its cryptocurrency specific GPUs. This is the first quarter that Intel won’t pay Nvidia anything for graphics licensing.
Data center revenue was $416 million and is up more than 2.5 times from a year ago. Nvidia launched the Volta-based V100 aiming at AI, deep learning, high-performance computing, and GRID. There is an increased interest about these markets and it is only going to go stronger in the future.
As we have said before, Nvidia is helping to train systems for many self-driving cars you will see on US and Western European streets in the next few years. Scientists are finding new ways how to use AI and training as it can be deployed on many other industries including for example anti-virus, image recognition, surveillance, governments.
Revenue from automotive business rose 19.3 percent to $142 million which was 4.2 million short of FactSet company guessing work.
Data center business including Amazon Web service and Microsoft Azure cloud business more than doubled to $416 but again fall short to $423.3 million according to FactSet.
Jensen Huang, founder and chief executive officer of NVIDIA
"Adoption of NVIDIA GPU computing is accelerating, driving growth across our businesses. Datacenter 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.
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 speedup 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 is currently 8,37 % down to $130.25 as according to financial analysts they failed to grow to markets they care about, and somehow these people forget the fact that this is the best quarter ever for Nvidia. Nvidia stock and valuation did look a bit steep but have in mind that Nvidia managed to significantly increase its revenue over the coars of a year. Rememer back in November 2016 Fudzilla wrote that today Nvidia is not just a GPU company anymore.
You should know by now that the financial market makes little sense but Nvidia is going to continue its success streak.
