Published: Sun, May 13, 2018
Research | By Jennifer Evans

Nvidia reaches new record for revenues, EPS in Q1

Nvidia reaches new record for revenues, EPS in Q1

The big victor is also the datacenter department, which reported a revenue of U.S. $707 million, up by 16 percent compared to the last quarter and up by 71 percent compared to the past year.

Nvidia predicts those sales will decline by two-thirds during the current quarter, which is an unexpectedly sharp decline.

Still under the GPU header, Nvidia says the datacenter business saw 71% year-on-year growth to $700 million in revenue, thanks to its Tesla V100 units, DGX systems, and HPC design wins. Even better is that Nvidia doesn't anticipate cryptocurrency mining putting on a strain on supply, as was partially the case before.

In terms of what that's meant for Nvidia in the first financial quarter of this year it's nearly $290 million. It should be noted, however, that the drop came from a record high of over $260 per share hit just prior to that. In the last quarter of 2017, AMD's share of the GPU market rose from 27.2% to 33.7%. But during its Q1, Nvidia was still able to bring in $289 million from mining-related activity. Retail prices for Nvidia's gaming chips surged earlier this year as miners snapped up chips, a development Nvidia addressed by releasing mining-specific chips.

Graphics card manufacturer Nvidia has announced its revenues for the first quarter, mentioning separately the amount generated from sales to the crypto market.

But after the company's latest earnings report, analysts and investors are debating whether growing sales of Nvidia's graphics chips to data centers can offset possibly declining sales to cryptocurrency miners.

If cryptocurrency prices continue to fall, that could have dire consequences for GPU makers. "And we saw the uptick and we saw the demand on GPUs from all over the world". "The first quarter was an outstanding start to 2018 with 40 percent year-over-year revenue growth", said AMD president and CEO Dr. Lisa Su. "People who are mining do go from one currency to another depending on what's happening".

Patrick Moorhead of Moor Insights & Strategy said he was not concerned by data center revenue because the buying patterns of huge cloud customers were "lumpy". And the reason for that is because, we want gamers to - the gaming experience of a graphics card depends so much on the GPU that is chosen. That could create a glut that will make it hard for AMD and Nvidia to sell new cards.

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