Nvidia Q219 results: record revenue from all platforms

Gladys Abbott
August 19, 2018

"Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million, while actual crypto-specific product revenue was $18 million", she said in the report. OEM, on the other hand, decreased 54 percent year-over-year to $116 million due to lower cryptocurrency mining demand.

"Growth across every platform - AI, Gaming, Professional Visualisation, self-driving cars - drove another great quarter", Jensen Huang, Nvidia's chief executive, said in a press release.

The related sales brought in a total of $3.2 billion, about 9 percent of the company's total revenue.

"We believe we've reached a normal period as we're looking forward to essentially no cryptocurrency as we move forward", Nvidia CFO Colette said.

Graphics processing unit (GPU) producer Nvidia has reported a "substantial decline" in GPU sales, owing to less demand from cryptocurrency miners. Nvidia's stocks are now 4.8% down at the time of writing. The benefit from crypto mining - which only kicked in three quarters ago - was unusual and has skewed comparisons, he said. Out of 23 analysts polled in the last 3 months, 17 are bullish on Nvidia stock, while 6 remain sidelined.

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Nvidia's shares saw a sharp drop of about 5% after the market closed yesterday as the company's revenue took a beating over reduced demand for cryptocurrency mining. That fell short of analysts' forecast of $3.34 billion.

Still, the second quarter continued Nvidia's steady strong growth in earnings across most of its markets, including AI, gaming, self-driving cars and visualization.

While data centre chips now account for a fifth of revenue and are increasingly a driver of overall growth, the company still gets most of its profit from its GeForce graphics processors. Operating expenses ended up at $818 million, up by 33 percent compared to the past year and up by six percent from the previous quarter. Despite the crypto-related sales decline, sales from gaming surged 52% to $1.8 billion, and data center-related sales surged 83% to $760 million.

Following Thursday's closing bell, Nvidia announced second-quarter earnings of $1.94 a share on revenue of $3.12 billion. Turing, as it's called, will also make its way into gamer- and data-center chips.

With the quarter's results, Nvidia revenue is on course more than double from 2016.

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