Nvidia records higher turnover due to, among other things, good sales of Nintendo Switch
Nvidia achieved a sharply higher turnover in the first quarter of 2017 compared to the first quarter of 2016. The good sales figures of the Nintendo Switch and Nvidia’s data center component contributed to the turnover increase, among other things.
Nvidia achieved revenue of $1.94 billion in the first quarter of 2017. That is an increase of 48 percent compared to the first quarter of 2016. The increase is partly due to the increased revenues from the gaming segment. Compared to the first quarter of 2016, the segment with gaming GPUs from Nvidia achieved 49 percent more turnover. This is evident from the quarterly figures that Nvidia has published.
Nvidia also did good business with the Tegra processors. The revenue generated in the first quarter of 2017 was $332 million, an increase of 108 percent compared to the same quarter a year ago. According to Nvidia, this sharp increase is largely due to the good sales of the Nintendo Switch console, which has a Tegra X1 soc on board.
The data center component performed the best in relative terms. This component includes server applications, business GPUs for supercomputing, artificial intelligence technology and deep learning applications. Revenue in this segment rose to $409 million, an increase of 186 percent compared to the first quarter of 2016. Nvidia expects a lot from this segment. According to Nvidia CEO Jensen Huang, Nvidia’s GPU deep learning platform is increasingly being used by internet giants, researchers and startups, who, according to him, are seeing more and more in this technology and AI.
The automotive division, in which Nvidia collaborates with other companies to develop technologies for autonomous driving, also showed good figures: turnover increased by 24 percent to 140 million dollars. The OEM & IP division had a turnover figure that fell by 10 percent. This is due to the fact that the license agreement between Intel and Nvidia ended in the first quarter of 2017, as a result of which Intel no longer uses Nvidia’s intellectual property for developing GPUs.
Earnings came in at $507 million in the first quarter of 2017, up 144 percent from the first quarter a year earlier. Profits declined slightly compared to the last quarter of 2016, which then amounted to $655 million.
Nvidia’s revenue is still heavily dependent on gaming revenue. The turnover of this division did fall compared to the last quarter of 2016, but the dependence on this is less due to the growth figures of the data center and automotive parts.