Growing Demand for GeForce GPUs Drives Nvidia’s Revenues Up 55 Percent

Nvidia has solidified its position as the leader in the GPU market with a 66 percent increase in revenue for its Gaming division and 55 percent for the entire company. E-sports in particular is driving the growth of the gaming sector, the company claims.

With a quarterly turnover of 1.35 billion dollars, converted 1.27 billion euros, Gaming is still by far the largest revenue branch for Nvidia. Last year after the same quarter, that division of Nvidia was able to record $801 million in revenue. AMD’s revenue in the Computing and Graphics segment, which includes the company’s video cards, also increased by 28 percent year-on-year, but with quarterly revenue of $600 million, the competitor is bringing in less money with GPUs.

Nvidia does not provide details on the amount of sales. According to the explanation of the figures at Seeking Alpha, CEO Jen-Hsun Huang says that there is an install base of 100 million GeForce gamers and that everyone will upgrade their video card within three to four years. He also mentions e-sports as a driving force behind the growth of the gaming market.

Nvidia also recorded growth of 10.8 percent in the Professional Visualization segments, which include the Quadro cards. The largest growth was seen in the Datacenter branch: 205.1 percent. Nvidia announced the DGX-1 deep learning system for this segment, among other things. With a quarterly turnover of USD 296 million, this is now the most important revenue segment after Gaming. Finally, there was growth in Automotive, which Jen-Hsun Huang has high hopes for with the advent of self-driving vehicles. Nvidia produces Tegra chips for this, among others, which are used by Tesla, among others.

Nvidia’s total revenue was $2.1 billion, up 55 percent from last year. Net profit was $655 million.