Nvidia reports $3.08 billion in Q1 2020 revenue, up 39% as AI and cloud soar

Nvidia reports $3.08 billion in Q1 2020 revenue, up 39% as AI and cloud soar

Nvidia posted revenues of $ 3.08 billion for the first quarter ended April 26, up 39% from the previous year. Revenues exceeded expectations, and earnings per share of $ 1.80 also exploded expectations as data center revenues from artificial intelligence and the cloud increased.

Nvidia, based in Santa Clara, California, manufactures graphics processing units (GPUs) that can be used for gaming, AI, and data center computing. While many companies have been hit hard by the pandemic, Nvidia has seen a boost in these areas.

Data center revenues were $ 1.14 billion, up 80% from the previous year. Gross profit margins, or profit on products sold, were 65.1%, a new record and much better compared to 58.4% a year earlier.

A year ago, Nvidia’s revenues for the first quarter amounted to $ 2.22 billion. Analysts had expected sales of $ 3 billion and non-GAAP earnings per share of $ 1.68. EPS was $ 1.80 on a non-GAAP basis, up 105% from 88 cents a year earlier. Nvidia shares are down 1% in after-hours trading, to $ 347.62 per share.

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During the quarter, Nvidia completed its $ 7 billion acquisition of Mellanox Technologies, manufacturer of key technologies to connect its chips in data centers. Nvidia also said that CEO Jensen Huang’s GPU Technology Conference’s keynote address last week was seen 3.8 million times in the first three days, and that more than 55,000 registrants attended the event. online only.

Huang said in a statement the company welcomes first responders, health care workers and service workers fighting COVID-19, and also thanked the scientists for working on the vaccine. Nvidia’s GPU technology aims to help these scientists get their jobs done faster, and Nvidia has made donations on this front to help with the effort.

To help its own employees, Nvidia has also advanced the increases by six months to ensure that employees can adapt to the challenges of the pandemic. Huang said that Nvidia employees donated $ 10 million to fight the coronavirus.

Last week, Nvidia launched its A100 GPU based on amp, a huge AI chip with 54 billion transistors and a design based on a new generation of AI technology.

Nvidia's A100 chip has 54 billion transistors.

Above: Nvidia’s A100 chip has 54 billion transistors.

Image credit: Nvidia

For the second fiscal quarter ending at the end of July, Nvidia forecasts revenue of $ 3.65 billion and gross profit margins of 58.6% on a GAAP basis and 66% on a non GAAP basis.

Gaming industry revenues for Nvidia chips totaled $ 1.34 billion, up 27% from the same period a year earlier. Headlines such as Minecraft could help advance the adoption of Nvidia’s RTX real-time ray-tracing technology, which gives computer images much better shadow and lighting effects. More than 100 new laptops use Nvidia GeForce GPUs with RTX technology.

Data center revenues of $ 1.14 billion increased 80% from the previous year. Professional viewing revenue was $ 307 million, up 15% from the previous year. Automotive revenue was $ 155 million, down 7% from the previous year.

Colette Kress, CFO of Nvidia, said in a statement that the challenges associated with COVID-19 had caused supply chain delays at the start of the quarter. On-site shelter rules in China have forced the closure of retail outlets and Internet gaming cafes, which has affected sales of gaming products. But working from home has also led to a surge in demand for gaming and business computers, as companies have equipped their workers with work tools.

Spending on “computer entertainment” and autonomous cars should decrease in the coming quarters. Graphics chip revenues were $ 1.17 billion, up 25% from last year.

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