NVIDIA reports record quarterly data centre sales of $968m



Jensen Huang, founder and CEO of NVIDIA Jensen Huang, founder and CEO of NVIDIA

In response to the possible financial impact that may be caused by the coronavirus outbreak, the company has reduced its revenue guidance for next quarter by $100m, it now expects revenue within 2% of $3bn.

NVIDIA (NASDAQ: NVDA) has reported revenue for the fourth quarter ended Jan. 26, 2020, of $3.11bn, up 41% from $2.21bn a year earlier, and up 3% from $3.01bn in the previous quarter.

Data centres revenue rose 43% reaching $968bn, which was driven by improved performance from hyperscale and vertical industry end customers, according to the company.

For fiscal 2020, the company’s revenue was $10.92bn, down 7% from $11.72bn a year earlier. GAAP earnings per diluted share were $4.52, down 32% from $6.63 a year earlier. Non-GAAP earnings per diluted share were $5.79, down 13% from $6.64 a year earlier.

“Adoption of NVIDIA accelerated computing drove excellent results, with record data centre revenue,” said Jensen Huang, founder and CEO of NVIDIA.

“Our initiatives are achieving great success. NVIDIA RTX ray tracing is reinventing computer graphics, driving powerful adoption across gaming, VR and design markets, while opening new opportunities in rendering and cloud gaming.


Newsletter

Time is precious, but news has no time. Sign up today to receive daily free updates in your email box from the Data Economy Newsroom.


“NVIDIA AI is enabling breakthroughs in language understanding, conversational AI and recommendation engines ― the core algorithms that power the internet today.

“And new NVIDIA computing applications in 5G, genomics, robotics and autonomous vehicles enable us to continue important work that has great impact. We are well-positioned for the greatest technology trends of our time.” 

The company’s outlook for the first quarter of fiscal 2021 did not include any contribution from the pending acquisition of Mellanox Technologies, Ltd.

In March 2019, the company announced that it had reached a definitive agreement with Mellanox Technologies (NASDAQ: MLNX) under which NVIDIA will acquire Mellanox.

In regards to the company’s data centre and edge computing business, NVIDIA unveiled the first scalable GPU-accelerated supercomputer in the cloud with Microsoft Azure.

The company also joined forces with AWS, using NVIDIA T4 Tensor Core GPUs to power AWS Outposts, bringing Amazon EC2 G4 instances to customers’ data centres.

Read the latest from the Data Economy Newsroom: