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Nvidia's revenue grew 54% last quarter driven by strong Pascal GPU sales

By Jos
Nov 11, 2016
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  1. Nvidia has just posted its biggest quarterly revenue growth in six years riding high on PC gaming, virtual reality, and AI processing for a variety of applications. Specifically, the company cracked the $2 billion mark in revenue for the quarter ended October 30, up an impressive 54% compared to the same quarter last year.

    A slide deck on the company’s investor relations site gives a breakdown of the quarter’s revenue performance by business unit. Consumer GPU sales still makes up for a vast majority of its business, contributing 85% to its total revenue at $1.244 billion, which represents a whopping 63% increase compared to the same quarter last year.

    ($ in millions) Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17
    Gaming 646 587 665 761 810 687 781 1,244
    Professional Visualization 190 181 176 190 203 189 214 207
    Datacenter 88 88 72 82 97 143 151 240
    Auto 56 77 71 79 93 113 119 127
    OEM & IP 271 217 174 193 198 173 163 186
    Total $1,251 $1,151 $1,153 $1,305 $1,401 $1,305 $1,428 $2,004

    As AnandTech points out for some painful context, Nvidia gained more revenue in the gaming segment this quarter than all of AMD’s Computing and Graphics segment last quarter.

    The company has done a decent job diversifying itself too. Revenue from its datacenter business almost tripled to $240 million, while its automotive business, which recently signed an agreement to supply chips for Tesla’s autopilot system, soared 60.8% to $127 million.

    Nvidia CEO Jen-Hsun Huang says the GPU is at a tipping point. “It’s in the cloud, data center, computers. It’s no longer a niche component.” He further noted the years of work and billions of dollars in investments poured to diversify the business. “Our GPU deep learning platform runs every AI framework, and is available in cloud services from Amazon, IBM, Microsoft and Alibaba, and in servers from every OEM. GPU deep learning has sparked a wave of innovations that will usher in the next era of computing.”

    Going forward Nvidia predicts it will close out the fiscal year with another strong quarter and post revenues of around $2.1 billion. With the recent announcement that they will power the Nintendo Switch, Nvidia could carry its successful streak into the first half of 2017.

    Permalink to story.

     
  2. 3volv3d

    3volv3d TS Booster Posts: 134   +51

    Not surprised.

    Instead of dropping the pricing of the 9xx series cards and putting the 10xx series cards in the top tier price point, they made a whole new insane price point, which everyone seems to be ok with.

    Even though they shouldn't get away with this after the 970 3.5gb fiasco.

    I will never understand the mentality of the consumer. It's way overpriced... I'll take two. Ugh
     
    HardReset and Reehahs like this.
  3. davislane1

    davislane1 TS Evangelist Posts: 3,562   +2,370


    Different valuation model. Piana's principle also applies.
     
    Last edited: Nov 11, 2016
    Reehahs likes this.
  4. cliffordcooley

    cliffordcooley TS Guardian Fighter Posts: 8,558   +2,900

    It's not just consumer mentality, it's mentality in general I don't understand.
     
    HardReset likes this.
  5. hahahanoobs

    hahahanoobs TS Evangelist Posts: 1,631   +432

    Well deserved for an amazing GPU. Next up - Volta.
     
  6. poohbear

    poohbear TS Addict Posts: 104   +62

    Their stock skyrocketed 30% in one day. This is AFTER it went up 100% in the past 3 months. Nvidia is on a tear. Congrats to people who bought Nvidia stock. Solid investment indeed.
     
  7. mosu

    mosu TS Guru Posts: 422   +48

    It takes a special kind of people to buy Nvidia, the kind that voted for Trump.
     
    HardReset likes this.
  8. cliffordcooley

    cliffordcooley TS Guardian Fighter Posts: 8,558   +2,900

    Strange! I didn't vote at all and I have nVidia. Or am I under some kind of grandfather clause, since I had nVidia before the elections?
     
    wastedkill likes this.
  9. Theinsanegamer

    Theinsanegamer TS Guru Posts: 382   +339

    It is no surprise really. If you want something with more performance then the mid range high end card from 2014, you go with nvidia. AMD just has nothing to compete with right now. When you get the market handed to you on a silver platter, you take advantage of it. The 1070 and 1080 have 0 competition right now, and the 1050 and 1050ti do much better then AMD in low power situations. Polaris is almost completely MIA in gaming laptops, while nvidia has 3 pascal cards.

    AMD needs to get in gear and release SOMETHING.
     
    Burty117, NimbusTLD, EEatGDL and 4 others like this.
  10. wastedkill

    wastedkill TS Evangelist Posts: 1,392   +329

    You mean the kind of people who aren't violent or angry... also the kind of people who didnt riot or illegally burn the american flag.. seems like the people who voted for trump & bought Nvidia stock/gear are the smart ones here..
     
    Agnomen, Fluffmeister and davislane1 like this.
  11. davislane1

    davislane1 TS Evangelist Posts: 3,562   +2,370

    Things I did in 2016:
    • Donated to the Trump campaign
    • Voted for Trump
    • Helped damage the Clinton campaign
    • Purchased a GTX 1070

    Things I didn't do in 2016:
    • Riot because my candidate lost
    • Rip people out of their car and beat them because my candidate lost
    • Abuse children because my candidate lost
    • Attack cheerleaders because my candidate lost
    • Attack Nvidia users because AMD is losing

    Here's a tip. If you don't want to sound like a bucket of water sourced from the Dead Sea, the next time you participate in a blood ritual spirit cooking performance art exhibition, ask to be influenced by a competent demon. And, for Christ's sake, lay off the pizza.
     
    Agnomen, amstech and Fluffmeister like this.
  12. EEatGDL

    EEatGDL TS Maniac Posts: 481   +159

    Why do you have to involve politics in totally unrelated topics? What about people outside of the US buying NVIDIA?
     
    BSim500 likes this.
  13. davislane1

    davislane1 TS Evangelist Posts: 3,562   +2,370

    He said 'Trump' but meant "nationalists."
     
  14. Footlong

    Footlong TS Enthusiast Posts: 37   +9

    Nvidia won "fair and square". It's bussiness pratices may hurt consumers a little, but AMD is the one which is in fault with consumers. It fails to deliver something that really convinces for the past 3 years. All AMD cards consume more energy and heat up more, albeit costing just a little less (sometimes more) than the competition. This is the definition of a bad purchase if you ask me.
     
    wastedkill and davislane1 like this.
  15. Evernessince

    Evernessince TS Evangelist Posts: 1,201   +595

    That logic makes zero sense. It's everyone but Nvidia's fault for it's own business practices, right..

    You should be a monopoly lawyer, you could use the same logic to defend anything. Comcast would be like "it's all the other cable companies fault we charge so much and treat our customers like crap!".
     
    mosu, HardReset and pencea like this.
  16. Footlong

    Footlong TS Enthusiast Posts: 37   +9

    You do understand that when I say Nvidia is not that good to customers I'm referring to the program "The Way It's Meant To Be Played" and all technologies Nvidia develops that are locked to Nvidia cards and run like crap? Nvidia however was not the only option for consumers for years. In fact one would expect AMD cards to run better since the Xbox One and PS 4 GPU's were designed in part by AMD.
    Look I think you clearly is on a more emotional side here, after Comcast is a service provider, whereas Nvidia provides a solid product and you still compare them... Show me Nvidia cards that are as faulty as Comcast services?

    I think Nvidia won this position by being a better company overall. A not so long time ago in history it was AMD and Nvidia who would become a single company (there were talks about a merging), but it was AMD executives, namely Hector Ruiz who lost that opportunity. If I remember correctly Jen-Hsun Huang demanded to be pointed not only president in the merging, but CEO. Look at the tables now? AMD payed an overprice for ATI. It also failed hard in the bulldozer chip. People can support the underdog all they want, but in the end of the day it's the underdog job to show something competitive in the market. Nvidia is in a position of comfort (so is Intel) and it's AMD job to bring something to shake up the market.
     
  17. Evernessince

    Evernessince TS Evangelist Posts: 1,201   +595

    I could compare Nvidia to comcast, intel, it doesn't change the point. Nvidia is responsible for its behavior in the market, not it's competitors. It's like taking a crap in someone's yard and blaming the owner for making the grass so appealing.

    That logic also doesn't work in reality either. You want AMD to compete with Intel and Nvidia seriously when AMD is worth less money than either Intel or Nvidia's R&D budget alone. Not to mention Intel cut AMD out of the market back it the day (OEMs would literally not take their chips for free even though they were better) and Nvidia uses it's GameWorks program to ensure it's cards get an extra boost (and it prevents AMD from optimizing for the game). It's kind of hard for AMD to come up with something when they are not only fighting a smaller budget but forces set in motion by Nvidia and Intel that ensure that even if AMD released a better product they would still just be spinning their wheels.
     
    mosu and wastedkill like this.

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