A new GamesBeat event is around the corner! Learn more about what comes next.
Graphics chip maker Nvidia reported earnings for its fourth fiscal quarter that beat Wall Street’s expectations.
Nvidia’s results are a bellwether for the PC industry, as the company is one of the largest makers of graphics chips. Its results are also indicators of the health of sectors such as PC gaming hardware, graphics-enhanced data center computing, and car computing. The PC market isn’t growing like it once did, but Nvidia still did well.
The Santa Clara, California-based company reported non-GAAP earnings of 52 cents a share on revenue of $1.4 billion.
Analysts had expected non-GAAP earnings of 32 cents a share on revenue of $1.31 billion. Nvidia itself predicted revenue of $1.3 billion, plus or minus 2 percent. Nvidia has an estimated 81 percent share of the discrete graphics card market, according to Jon Peddie Research. Nvidia’s stock is up 6 percent in after-hours trading.
Three top investment pros open up about what it takes to get your video game funded.
Nvidia’s graphics processing unit revenue was up 10 percent. Gaming revenue was up 25 percent from a year ago, thanks in part to interest in virtual reality and strong sales of holiday games.
“We had another record quarter, capping a record year,” said Jen-Hsun Huang, cofounder and chief executive officer of Nvidia, in a statement. “Our strategy is to create specialized accelerated computing platforms for large growth markets that demand the 10x boost in performance we offer. Each platform leverages our focused investment in building the world’s most advanced GPU technology.”
He added, “Nvidia is at the center of four exciting growth opportunities — PC gaming, VR, deep learning, and self-driving cars. We are especially excited about deep learning, a breakthrough in artificial intelligence algorithms that takes advantage of our GPU’s ability to process data simultaneously.”
And he said, “Deep learning is a new computing model that teaches computers to find patterns and make predictions, extracting powerful insights from massive quantities of data. We are working with thousands of companies that are applying the power of deep learning in fields ranging from life sciences and financial services to the Internet of Things.”
Huang has dedicated most of the time in Nvidia’s recent press conferences to Nvidia’s attempts to create supercomputers for cars, which could fuel innovations such as dashboard electronics, infotainment systems, and self-driving cars.
Nvidia is engaged with 3,500 companies in the deep learning market, said Colette Kress, chief financial officer, in a conference call with analysts today. It’s a good thing that the emerging markets are taking off, as Nvidia made a big move into mobile chips and then decided to exit that market.
“Nvidia is firing on all cylinders right now in both their traditional markets and even emerging segments like automotive and neural network workloads in datacenters,” said Patrick Moorhead, analyst at Moor Insights & Strategy. “It is making their exit in smartphone hardware somewhat of a ‘who cares.’ There’s a vicious fight for the self-driving car and it’s important for them to rack up big designs.”
GamesBeatGamesBeat's creed when covering the game industry is "where passion meets business." What does this mean? We want to tell you how the news matters to you -- not just as a decision-maker at a game studio, but also as a fan of games. Whether you read our articles, listen to our podcasts, or watch our videos, GamesBeat will help you learn about the industry and enjoy engaging with it. How will you do that? Membership includes access to:
- Newsletters, such as DeanBeat
- The wonderful, educational, and fun speakers at our events
- Networking opportunities
- Special members-only interviews, chats, and "open office" events with GamesBeat staff
- Chatting with community members, GamesBeat staff, and other guests in our Discord
- And maybe even a fun prize or two
- Introductions to like-minded parties