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Nvidia has a record $1.305 billion quarter

by on06 November 2015


Thanks to VR, gaming, deep learning, cloud, automotive and AMD snoozing 

Nvidia has announced record revenues in the third quarter for fiscal 2016 as a few long play strategies are starting to work out. Nvidia is diversifying beyond PC gaming . 

The third quarter of fiscal 2016 [not a typo ed.] is up 7 percent from $1.225 billion a year earlier. This shows a signs of growth across the market. GAAP operating income was $245 million, up 15 percent from a year ago. The revenue is up 13 percent from $1.153 billion in the previous quarter.

Nvidia managed to grow to $264 million in net income which is an 846 percent up from $26 million profit from the last quarter. Net income was 42 percent higher when you compare it to last yearr. The company increased its operating income from $76 million to $245 million or 222 percent. The operating margin grew from 55.0 percent to a 56.3 per cent which are also quite large numbers.  

Jen-Hsun Huang, co-founder and chief executive officer, NVIDIA said:

"Our record revenue highlights NVIDIA's position at the center of forces that are reshaping our industry. Virtual reality, deep learning, cloud computing and autonomous driving are developing with incredible speed, and we are playing an important role in all of them.

Virtual Reality is more of a 2016 and beyond thing,  but it helps that Oculus recommends at least a $299 Geforce 970 card for a good experience. Gaming enthusiasts will be among the first adopters which mean even more GPU sales for Nvidia.

Triple AA titles such as Call of Duty: Black ops 3 and upcoming Star Wars Battlefront which will start shipping in 10 days will definitely boost the GPU sales further.

Other non-GPU markets worked out for Nvidia. Nvidia spends a lot of time with deep learning, cloud computing and autonomous driving and it makes some money from it. The automotive business is a growth factor for Nvidia. Geforce Now has just started to seriously penetrate the cloud computing market and there will be many scenarios where companies that need a lot of GPU power will opt to use Nvidia GPU powered cloud computing solutions.

Nvidia's last fiscal quarter saw it introduce the Geforce GTX 950, Nvidia Gameworks VR SDK, Geforce Now,  Netflix subscription based gaming service and extend Shield TV to Europe. In the professional market the company introduced the Designworks VR SDK.  In the Datacenter Nvidia launched Nvidia GRID 2.0 virtualised graphics platform. Nividia announced that Microsoft Azure will be the first cloud-services provider to offer GRID 2.0 capabilities, as well as accelerated computing.

In Automotive Nvidia was featured in new production vehicles and concept cars with NVIDIA-powered digital cockpits in Mercedes-Benz, Audi, Porsche, Bentley and Honda at the International Auto Show in Frankfurt.

Tesla model X comes with Nvidia powered infotainment system and digital instrument cluster. Things are looking good and Shield strategy and some other products are a long term play according to Nvidia's CEO. Of course its bottom line is helped by the fact that AMD is pretty much sitting on its hands waiting for its Zen chip to come out.

Last modified on 06 November 2015
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