Nvidia’s revenue up 57 percent on an annual basis – games and data centers go like the train

Most people associate Nvidia entirely with graphics cards, but the company has long since diversified its operations. While traditional Geforce graphics cards for gaming are still a significant part of Nvidia, investments in data centers have borne fruit. During the second quarter of the year, the data center even changed Gamingdivision in revenue.

Q3 2021 *

Q3 2020 *

Q2 2021*

Income

4.726 billion

3.014 billion

3.866 billion

Operating profit

1.398 billion

927 million

651 million

Net profit

1.336 billion

899 million

622 million

Bruttovinst

62,6%

63,6%

58,8%

* The figures are reported as 2021 when Nvidia has broken the financial year.

Nvidia is now presenting the figures for the third quarter of the year. For the period, Nvidia includes revenue of USD 4.73 billion, up as much as 57 percent compared to the same period last year. This is also a real increase of 22 percent on a quarterly basis, where the company withdrew SEK 3.89 billion during the second quarter. The gross margin for the quarter landed at 62.6 percent, up from 58.8 percent last quarter and down slightly from 63.8 percent on an annual basis.

NVIDIA is firing on all cylinders, achieving record revenues in Gaming, Data Center and overall. The new NVIDIA GeForce RTX GPU provides our largest-ever generational leap and demand is overwhelming. NVIDIA RTX has made ray tracing the new standard in gaming. […] We are continuing to raise the bar with NVIDIA AI. Our A100 compute platform is ramping fast, with the top cloud companies deploying it globally. – Jensen Huang, VD och grundare av Nvidia

Unlike the second quarter where the division Data Center accounted for the most part it is Gaming who took the lead. The gaming division accounted for 2.27 billion of revenue, which is 37 percent up on both an annual and quarterly basis. The part continued to pull Professional Visualization in 236 million, up 16 percent compared to the previous quarter and 27 percent on an annual basis.

To Gaming went past Data Center does not mean that the latter went badly. Revenue for the third quarter landed at SEK 1.90 billion, up 8 percent compared to the second quarter and as much as 162 percent on an annual basis. One part that is doing less well is the investment in cars, Automotive, with revenues of 125 million. It is admittedly a rise of 13 percent from the second quarter, but a decline of 23 percent on an annual basis.

The strong growth of traditional graphics cards is not entirely unexpectedly attributed to the launch of the Geforce RTX 3000 series with the architecture Ampere, which according to Nvidia’s CEO Jensen Huang delivered the biggest performance boost ever with “overwhelming demand” as a result. On the data center side, the heavyweight is the A100 computing card, which is increasingly being embraced by companies operating in the cloud and in artificial intelligence (AI).

For the fourth quarter of 2020, Nvidia expects revenue of $ 4.80 billion, plus or minus 2 percent. The gross margin is estimated at 62.8 percent, compared to today’s 62.6 percent.

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