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Nvidia Posts Strong Results on Demand for Graphics, Self Driving Systems

Nvidia Posts Strong Results on Demand for Graphics, Self-Driving Systems

By Reuters | Updated: 10 February 2017 09:57 IST

Nvidia Corp's quarterly revenue surged more than 50 percent for the second straight quarter and beat expectations, helped by rising demand for its graphics chips and strength in rapidly growing areas such as self-driving systems and artificial intelligence.

The company also forecast revenue of $1.90 billion (roughly Rs. 12,710 crores), plus or minus 2 percent, for the current quarter, marginally higher than analysts' expectations of $1.88 billion, according to Thomson Reuters I/B/E/S.

Revenue in the company's graphics processing units business, which contributes more than three-quarters to its total revenue, rose 57 percent to $1.85 billion in the fourth quarter ended January 29.

The company has traditionally dominated the high-end PC gaming market, where its chips are used to power graphically demanding games such as Electronic Arts Inc's "Titanfall 2" and Ubisoft Entertainment SA's "Watch Dogs 2".

Revenue at the company's fast-growing data centre business, which counts Amazon.com Inc's Amazon Web Services, Microsoft Corp's Azure and Alibaba Group Holding Inc's cloud business among its customers, more than tripled to $296 million (roughly Rs. 1,979 crores) in the quarter.

The business is also expected to grow sequentially, Nvidia Chief Financial Officer Colette Kress said on a conference call.

Nvidia Announces Pascal-based Quadro GPUs for Deep Learning, VR Content

Revenue in Nvidia's automotive business, which produces the DRIVE PX 2 self-driving system used by Tesla Inc, reported a 37.6 percent rise to $128 million.

Analysts had expected revenue of $135.3 million from the business, according to research firm FactSet StreetAccount.

Nvidia's total revenue rose to $2.17 billion (roughly Rs. 14,516 crores) from $1.40 billion, beating the average analyst estimate of $2.11 billion.

The company's net income more than tripled to $655 million, or 99 cents per share.

Analysts on average had expected earnings of 83 cents per share.

Nvidia's shares, which have risen nearly five times in the last 12 months, were down 1 percent at $115.21 in after-hours trading on Thursday.

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Further reading: Nvidia, Nvidia Earnings, Chips, Self Driving, Artificial Intelligence, AI, PC, Laptops, Mobiles, Tablets, Transportation, Home Entertainment