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Nvidia earns record revenues thanks to booming sales of… everything

Nvidia Corp. on Thursday reported its financial results for the third quarter of its fiscal 2015, which ended on the 26th of October, 2014. The company earned record revenue in a single quarter thanks to increased sales of all of its products, including all types of graphics processing units as well as Tegra system-on-chips.

Nvidia’s revenue for the Q3 FY2015 totaled $1.225 billion, up 16 per cent from $1.05 billion a year earlier and up 11 per cent from $1.10 billion the previous quarter. Nvidia’s net income for the quarter was $173 million, operating expenses were around $463 million, whereas gross margin was 55.2 per cent. Revenue for the first three quarters of fiscal 2015 was a record $3.43 billion, up 15 per cent from $2.99 billion a year earlier.

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Sales of Nvidia GPUs in Q3 2015 were up 11 per cent sequentially and 13 per cent year-over-year. According to Colette Kress, chief financial officer of Nvidia, The GPU business grew due to the launch of the new GeForce GTX 900-series “Maxwell” products and the seasonal increase in demand for consumer PCs. In addition, Nvidia’s datacenter platform revenue increased as a result of continued strength in GPU acceleration opportunities. The company claims that during the quarter it signed “large” contracts with cloud service providers and government customers.

Sales of Nvidia Tegra application processors for mobile, consumer and automotive applications were up 6 per cent quarter-over-quarter as well as 51 per cent year-over-year. Ms. Kress claims that Tegra sales were led by automobile infotainment systems, mobile devices, embedded systems, and the onset of Shield tablet sales. Automobile infotainment system revenue nearly doubled year over year.

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“Nvidia’s focus on creating visual computing platforms for datacenter, mobile and PC drove record revenue this quarter,” said Jen-Hsun Huang, president and chief executive officer of Nvidia. “Growth drivers have kicked in for us on several fronts. High-performance computing, virtualization and web service providers have created demand for our GPU-accelerated datacenter platforms. Automakers are using Tegra to help reinvent the driving experience. And our new Maxwell architecture is a giant leap forward that has triggered a major upgrade cycle by PC gamers.”

For the Q4 FY2015 the company expects revenue of around $1.2 billion, operating expenses of approximately $470 million and gross margin of about 55.2 per cent.

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KitGuru Says: Unfortunately, Nvidia does not provide a detailed revenue split and it is unclear how significantly the launch of the GeForce GTX 970/980 and the GeForce GTX 970M/980M affected the company’s sales. Keeping in mind that there were no major announcements regarding Tesla or Quadro products (even though Nvidia mentions certain design wins now), it looks like gaming GPUs based on the Maxwell architecture indeed drove Nvidia’s revenue to the record levels

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  • Joacpro

    Time goes fast.

  • Syed Abdul Muqsit

    rip amd

  • Ole fra trondheim

    You see AMD? This is how you run a company.
    Its like two opposite. AMD is laying people off and posting loss quarter after quarter. Nvidia is enjoying profit after profits year after year.

  • Chuck is a Faggot

    Dude, AMD does so much more on a business front than Nvidia it’s not even apples to apples. Secondly while AMD might post net loss, they still have a higher income over Nvidia as well as Equity. You see people? This is how you show ignorance.

  • Harry Dibben

    Last I checked, having a higher revenue and lower profits was hardly the ideal way to run a company bro.

  • Søren Chr. Nielsen

    So your logic is that since Nvidia is making money, AMD is going to die?

  • Søren Chr. Nielsen

    So your logic is that since Nvidia is making money, AMD is going to die?

  • listen it’s 80% now if same thing happens then 80% will go to 90% and so on man yes that’s my logic but you logic?

  • Søren Chr. Nielsen

    80% what? What are those 80% that you’re referring to?

  • 80% market -_- reports by mercury research

  • Søren Chr. Nielsen

    Okay, first of all. That’s just one source and they’re saying that the Enthusiast lvl GPU market share is now more than 67% and that “some believe that Nvidia now controls 80 per cent of the high-end desktop GPU market”. Assuming those numbers are correct, then that’s still not couting anything not at those price points. Even if Nvidia has 80% of the total market share of all PC GPU price points, then that still does not mean that AMD is dying. Besides, last time I saw any data on this, the High-end GPUs only made up about 10% of the total sales of GPUs, so even if Nvidia has locked down 80% of that market, it still leaves 90% of the rest of the GPU sales to be distributed between the two companies.

    For the Q3 quarterly financial reports, AMD reported a revenue of $1,43 billion (down from $1,44 billion in Q2), while Nvidia reported just over $1 billion (up from just under $1 billion in Q2). Does that look like a company that’s about to roll over and die? AMD does not just sell GPUs either, they sell technologies and CPUs and software, etc, etc. just like Nvidia does. Nvidia lost out on the current Next Gen Console generation, because AMD got all the deals to manufacture CPUs and GPUs for both the Xbox One and the PS4, which is a very lucrative deal.

    I could go on, but my point is this: AMD is not dying. They lost a market share in the high-end GPU market to Nvidia’s latest and greatest GPUs, which is something they may or may not get back. Regardless of what happens in that section of the market, there’s still the majority left to fight over.