New chips and data center growth drive Nvidia to record earnings

New chips and data center growth drive Nvidia to record earnings

New chips and data center growth drive Nvidia to record earnings

Gaming and deep learning continue to drive graphics chip maker Nvidia Corp., which today released its best quarterly earnings ever, beating fourth-quarter expectations and hitting a record $2.17 billion in revenues.

The maker of graphics processing unit chips, or GPUs, saw revenues jump 55 percent from a year ago. Nvidia also posted an impressive gross margin of 60 percent. This marks the seventh consecutive quarter Nvidia beat earnings expectations.

Still, investors may have wanted a bit more, especially in the company’s first-quarter outlook, which also beat forecasts but perhaps not as much as hoped. Nvidia, whose stock performed best among S&P 500 companies last year with a return of 227 percent, saw its shares vacillate up and down a fraction in after-hours trading, after falling nearly 2 percent in regular trading, to $116.38.

Nvidia called out strong adoption of its Pascal GPU chip architecture, which hit the market last year. Nvidia’s gaming GPU business alone brought in over $1.34 billion in the fourth quarter, and during today’s earnings call, Chief Executive Jen-Hsun Huang said that the personal computer gaming market is still going strong and continues to be one of the company’s core businesses. Huang credited the rise of esports, which is projected to become a $1.4 billion industry by 2019, with the continued growth of gaming, calling it “a dynamic that nobody ever expected 20 years ago.”

Read Also:
What Does the Cloud Mean for Big Data Analytics?

Perhaps even more impressive, the company’s data center segment more than tripled in 2016.



Chief Analytics Officer Spring 2017

2
May
2017
Chief Analytics Officer Spring 2017

15% off with code MP15

Read Also:
Data relevance: how to turn ‘straw into gold’

Big Data and Analytics for Healthcare Philadelphia

17
May
2017
Big Data and Analytics for Healthcare Philadelphia

$200 off with code DATA200

Read Also:
The role of machine learning on master data management

SMX London

23
May
2017
SMX London

10% off with code 7WDATASMX

Read Also:
Open Source: Is it Right for Your Database?

Data Science Congress 2017

5
Jun
2017
Data Science Congress 2017

20% off with code 7wdata_DSC2017

Read Also:
Elon Musk Wants To Link Human Brains To AI With Neuralink To Help With Brain Injuries And Improve Communication

AI Paris

6
Jun
2017
AI Paris

20% off with code AIP17-7WDATA-20

Read Also:
A method based on artificial intelligence allows to diagnose Alzheimer's or Parkinson's

Leave a Reply

Your email address will not be published. Required fields are marked *