Nvidia was able to beat Wall Street's expectations when it released its earnings for its first fiscal quarter due to increased demand of its graphics chips by consumers and automotive companies.
The company is one of the largest manufacturers of graphics chips and its first quarter results show that PC gaming hardware, deep learning, graphics enhanced data centre computing and car computing are all growing sectors. As the PC market has slowed, Nvidia's decision to utilise its graphics chips in emerging technologies has paid off.
The company reported non-GAAP earnings of 46 cents a share and a revenue of $1.3 billion. Nvidia's shares increased by 39 per cent from last year and its revenue increased by 13 per cent. Analysts had expected the company's non-GAAP earnings to be at 31 cents a share on revenue of $1.27 billion.
Nvidia controls 81 per cent of the discrete graphics market and its expansion into data centres and car computing has helped it retain a lead on its competitors. The company's stock has risen by 4.8 per cent to $37.30 a share and its second fiscal quarter remains positive with a revenue of $1.35 billion.
Nvidia's CEO, Jen-Hsun Huang elaborated on his company's strong first quarter: “We are enjoying growth in all of our platforms – gaming, professional visualization, data centre and auto. Accelerating our growth is deep learning, a new computing model that uses the graphics processing unit's (GPU's) massive computing power to learn artificial intelligence algorithms. Its adoption is sweeping one industry after another, driving demands for our GPUs.”
The company also just unveiled its next generation of GPUs in Austin, Texas last Friday. The Geforce GTX 1080 and 1070 GPUs have already impressed consumers and will surely lead to more sales in the company's second fiscal quarter.
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