NVIDIA Reports Record Earnings Of $1.43 Billion Up 24 Percent YOY With Strong Demand For Pascal
Life is good for NVIDIA. The GPU maker reported record revenue of $1.43 billion for the second quarter ended July 31, 2016, up an impressive 24 percent from $1.15 billion a year earlier and a gain of 9 percent sequentially from $1.30 billion in the previous quarter. After paying the bills, NVIDIA was left with a profit of $253 million for the quarter, up a mind boggling 873 percent year-over-year and 29 percent from a quarter ago.
"Strong demand for our new Pascal-generation GPUs and surging interest in deep learning drove record results," said Jen-Hsun Huang, co-founder and chief executive officer, NVIDIA. "Our strategy to focus on creating the future where graphics, computer vision and artificial intelligence converge is fueling growth across our specialized platforms -- Gaming, Pro Visualization, Datacenter and Automotive."
NVIDIA raked in just shy of $1.2 billion from its GPU business, which includes graphics solutions for gaming, datacenter, and professional visualization customers, as well as for Tegra automotive systems. But it was gamers who put the most money in NVIDIA's pocket—revenue from gaming totaled $781 million for the quarter, up 18 percent from $660 million a year ago and 14 percent sequentially from $687 million last quarter.
It was an impressive quarter all around for NVIDIA, save for its OEM & IP division, which raked in $163 million. That's no small sum, but it's down from $173 million in the prior quarter and less than the $174 million it collected a year ago. However, NVIDIA made up for the drop in every other category, and then some.
Looking ahead, NVIDIA will ride the momentum created by Pascal and see where the fields of deep learning and artificial intelligence.
"We are more excited than ever about the impact of deep learning and AI, which will touch every industry and market. We have made significant investments over the past five years to evolve our entire GPU computing stack for deep learning. Now, we are well positioned to partner with researchers and developers all over the world to democratize this powerful technology and invent its future," Huang added.
NVIDIA's share price hit a record high following news of its outstanding quarter. It spiked in after-hours trading to more than $63 before dipping when the opening bell rang, but is now trading at $61.78, up around 3.5 percent from yesterday's closing price.
"Strong demand for our new Pascal-generation GPUs and surging interest in deep learning drove record results," said Jen-Hsun Huang, co-founder and chief executive officer, NVIDIA. "Our strategy to focus on creating the future where graphics, computer vision and artificial intelligence converge is fueling growth across our specialized platforms -- Gaming, Pro Visualization, Datacenter and Automotive."
NVIDIA raked in just shy of $1.2 billion from its GPU business, which includes graphics solutions for gaming, datacenter, and professional visualization customers, as well as for Tegra automotive systems. But it was gamers who put the most money in NVIDIA's pocket—revenue from gaming totaled $781 million for the quarter, up 18 percent from $660 million a year ago and 14 percent sequentially from $687 million last quarter.
It was an impressive quarter all around for NVIDIA, save for its OEM & IP division, which raked in $163 million. That's no small sum, but it's down from $173 million in the prior quarter and less than the $174 million it collected a year ago. However, NVIDIA made up for the drop in every other category, and then some.
Looking ahead, NVIDIA will ride the momentum created by Pascal and see where the fields of deep learning and artificial intelligence.
"We are more excited than ever about the impact of deep learning and AI, which will touch every industry and market. We have made significant investments over the past five years to evolve our entire GPU computing stack for deep learning. Now, we are well positioned to partner with researchers and developers all over the world to democratize this powerful technology and invent its future," Huang added.
NVIDIA's share price hit a record high following news of its outstanding quarter. It spiked in after-hours trading to more than $63 before dipping when the opening bell rang, but is now trading at $61.78, up around 3.5 percent from yesterday's closing price.
