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Nvidia saw its shares jump more than 14 percent yesterday after the company reported better-than-expected first quarter earnings. Its success was attributed to the continuing “AI revolution,” its deep learning platform, and the popularity of its Tegra processors that are found in devices such as the Nintendo Switch and car infotainment systems.
Nvidia reported a net income of $507 million, or 79 cents per shares, more than double the $208 million from Q1 2016. There were Non-GAAP earnings of 85 cents per share on revenue of $1.94 billion, which marks a 48 percent increase over the same period one year earlier.
The figures beat analysts’ expectations, who were looking for earnings of 68 cents per share on revenue of $1.9 billion.
"Our Datacenter GPU computing business nearly tripled from last year, as more of the world's computer scientists engage deep learning. One industry after another is awakening to the power of GPU deep learning and AI, the most important technology force of our time," said Nvidia founder and CEO Jensen Huang.
Part of the company’s success during the last quarter comes from its Tegra processor business, which, thanks to the Nintendo Switch, added $332 million to Nvidia’s total revenue. Automotive processor revenue, which is part of the Tegra figure, was up 24 percent from a year earlier and hit a record $140 million, mostly due to an increasing amount of Nvidia tech making its way into car infotainment modules.
"Transportation is the atomic Internet, the physical Internet," said Huang. "Every aspect of mobility and transportation and delivery will be augmented by AI."
Nvidia’s financials look just as positive for the current quarter. It expects revenue of $1.95 billion, plus or minus 2 percent, while analysts are expecting revenue of at least $1.89 billion.