NVIDIA Rocks Fiscal Q1 Earnings With Record Revenue On GPU Sales Surge
- Author: Kara Saunders May 12, 2018,
May 12, 2018, 12:56
Chief Financial Officer Colette Kress said that Nvidia expects earnings from cryptocurrency-related sales to drop 65 per cent in the next quarter, down to roughly $100 million. With that in mind, I do wonder whether or not we'll see new GeForce GPUs any time soon. In fact, its Q1 net income rose by 145 percent compared to Q1 a year ago, and its gaming specific revenue spiked up by 68 percent.
Total revenue rose to $3.21 billion from $1.94 billion.
When it comes to sales from chips for cryptocurrency miners - Nvidia earned $289 million, which is about nine per cent of the company's overall $3.2 billion revenue. Nvidia managed to secure a deal with several key auto manufacturers, and its DRIVE Pegasus AI computing platform with Xavier SoC will probably get the company some future wins.
Conversely, it's also possible that reduced mining demand will result in a flood of cheap used graphics cards on the market, which could reduce sales of newer models.
Yeah. Thanks for your question, Toshiya.
The US company best known for chips that enhance video game graphics has diversified into an array of businesses including artificial intelligence, self-driving cars and digital mining, but investors are most concerned with its inroads in the market for cloud computing. This helps to maintain the integrity of the data on the blockchain (in this case, who owns how many digital coins) in exchange for new digital coins. And some of the people really disliked it. With ethereum being the most popular cryptocurrency being mined on GPUs, Bitmain is expected to take a significant portion of chip-related market share when the Antminer E3 launches later this year.
Earnings in this space are up 71 per cent year-over-year to a record $701 million.
The automotive department is still hanging on, and although it is the lowest earner compared to other departments, it still brought United States $145 million, up by 10 percent compared to the last quarter and 4 percent compared to the same quarter previous year. Like Nvidia, AMD also expects mining revenue to decline in the coming days.
Cryptocurrency remained a key sector for Nvidia. NVIDIA generated more revenue from gaming than all of its other market segments combined. They touched a record high at $260.50 (Rs. 17,500) on Thursday before the announcement.