NVIDIA GeForce GTX 10 Series And Deep Learning GPUs Buoy Blockbuster Q3 Earnings

We don't know what is going on behind closed doors but we wouldn't be surprised if NVIDIA's brass popped a bottle of bubbly today. They deserve it—the company reported record revenue of $2 billion for the third quarter ended October 30, 2016, up 54 percent from the $1.3 billion it collected in the same time period a year ago. It's also an increase of 40 percent sequentially.

After expenses, NVIDIA was left with a $542 million profit for the quarter, which is more than double the previous quarter ($261 million) and up 120 percent from the $246 million profit it posted a year ago.

NVIDIA GeForce Titan X

"We had a breakout quarter—record revenue, record margins and record earnings were driven by strength across all product lines," said Jen-Hsun Huang, founder and chief executive officer, NVIDIA. "Our new Pascal GPUs are fully ramped and enjoying great success in gaming, VR, self-driving cars and datacenter AI computing."

Indeed, the company's recently introduced Pascal architecture in the form of its GeForce GTX 10 series for desktop and mobile has reinvigorated the graphics sector. That was underscored by NVIDIA collecting $1.24 billion in revenue from its Gaming division, up from $781 million in the previous quarter and nearly double the $761 million it generated a year prior. Have a look at this breakdown:

Nvidia Revenue
Results in millions. Source: NVIDIA

NVIDIA's efforts to expand into categories beyond gaming GPUs is paying off. It saw year-over-year gains in every department, including both its datacenter and auto investments.

"We have invested years of work and billions of dollars to advance deep learning. 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," he said.

NVIDIA expects to build on the momentum created by its new GPUs and deep learning efforts. The company forecasts $2.1 billion in revenue next quarter, plus or minus two percent, with operating expenses of around $572 million.

Looking even further down the road, NVIDIA appears to be in exceptional shape. Following a successful transition to a 16nm FinFET manufacturing process with Pascal, NVIDIA will look to make another splash either next year or (more likely) in 2018 with Volta, a new architecture that purportedly will be built on a 10nm manufacturing process.

Via:  NVIDIA
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