Shares of NVIDIA jumped by more than 8 percent in early morning today, the result of renewed confidence by investors following the company's latest earnings report. While the numbers are still down overall from last year, NVIDIA's performance in the second quarter shows it is finally starting to recover from the cryptocurrency crash.
"We achieved sequential growth across our platforms," said Jensen Huang, founder and CEO of NVIDIA. "Real-time ray tracing is the most important graphics innovation in a decade. Adoption has reached a tipping point, with NVIDIA RTX leading the way."
Indeed, NVIDIA's $2.58 billion in revenue during the second quarter for its fiscal 2020 represents a 16 percent sequential bump. It's also down 17 percent from the same quarter a year ago, when the demand for GPUs by crypto-numbers was sky high. The same trend can be seen with NVIDIA's net income for the quarter—it reached $552 million, up 40 percent from the previous quarter, and down 50 percent year-over-year.
One thing working in NVIDIA's favor is a diversified portfolio, in terms of the types of GPUs it offers. In addition to gaming, NVIDIA also builds GPU products for professionals, data center clients, and automobiles.
Gaming is still NVIDIA's bread and butter, though. It accounts for the majority of NVIDIA's business, raking in a little over $1.3 billion last quarter. That's 24 percent more than the previous quarter, and down 27 percent from a year ago.
Seeing a sequential jump is not a surprise. The company's GeForce RTX series continues to gain traction, and its recently launched GeForce RTX Super refresh increased the value proposition for gamers. Meanwhile, AMD has finally countered with its Navi lineup, which makes things interesting going forward.
Looking ahead, NVIDIA anticipates its revenue to continue on an upward trajectory, to $2.9 billion (plus or minus 2 percent) in the third quarter. And while not confirmed, NVIDIA may have another GeForce RTX Super card coming, possible a GeForce RTX 2080 Ti Super.