NVIDIA Revenue Up As Demand For Graphics Chips Grows
NVIDIA has reported a 54 per cent growth in quarterly revenue following significant growth in demand for the company’s graphics cards in gaming PCs and data centres.
The chipmaker posted a third quarter revenue of US$2 billion, well above initial estimates of US$1.69 billion, and earnings of US$0.83 per share versus US$0.57 estimates.
While the company saw strong growth in its core gaming business revenue, up 63 per cent year-on-year to US$1.2 billion, the strongest growth is in the company’s data centre business. Revenue has increased by 193 per cent to $240 million as major companies utilise NVIDIA graphics cards for artificial intelligence software.
“We have invested years of work and billions of dollars to advance deep learning,” said NVIDIA founder and CEO Jen-Hsun Huang.
“Our GPU deep learning platform runs every AI framework, and is available in cloud services from Amazon, IBM, Microsoft and Alibaba, and in servers from every OEM,” Mr Huang said.
NVIDIA’s automotive revenue, including the company’s work with self-driving cars, is also up 61 per cent to $127 million
Shares in the company rose 16 per cent in after-hours trading.