2021-04-22

4You Dialy

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Over the past year, NVIDIA increased gaming revenue by 41%, server – by 124%

3 min read

This week, NVIDIA reported on the results of the fiscal quarter ended January 31, as well as the entire 2021 fiscal year, which has already passed on the company’s calendar. The record was both revenue for the fourth quarter and annual revenue – in the latter case, the increase was 53%. The growth leader, by the way, was not the gaming segment, but the server segment.

Image source: NVIDIA

Of course, the phenomenon of more than twofold growth in revenue in the server direction can be explained by the takeover of Mellanox, which took place last year, but it is also impossible to deny the beneficial effect of the pandemic on the server business of NVIDIA in its initial state. If we talk specifically about the results of the fourth quarter, then the total revenue of the company consistently increased by 6% to billion, and in annual comparison it increased by 61%.

Graphics solutions as such formed 60% of all NVIDIA’s revenue in the fourth quarter, the sequential revenue growth in this area was 10%, in annual comparison – 47%. Computing and networking solutions increased NVIDIA’s revenue by 91% YoY, but no sequential comparison is provided due to changes in revenue accounting.

Источник изображения: NVIDIA

Image source: NVIDIA

Half of revenue in the fourth quarter of NVIDIA received from the implementation of gaming solutions. In the desktop and mobile segment, revenue was growing, but the seasonal decline in demand for game consoles had a negative impact on the sequential change in gaming revenue. The segment as a whole allowed the company to consistently increase its revenue by 10%, in annual comparison – by 67%, to 495 billion, which is a record value.

Professional imaging solutions increased NVIDIA’s revenue by 30% to 07 million in sequential comparison, down 7% year-on-year. In the data center segment, the company’s revenue increased by 97% YoY. The observed sequential rise in revenue of 16% in the automotive segment, to 45 million, could not compensate for the decline in annual terms by 11%. In the case of NVIDIA, the situation is aggravated by the fact that the demand for components for multimedia car systems is gradually decreasing, and active driver assistance systems are not yet able to compensate for this in monetary terms.

The “OEM and Other” segment, through which specialized solutions for miners passed in the past, is still reporting exclusively on graphics solutions for finished PCs and laptops. Revenue declined consistently by 21%, but increased by 1% yoy. As explained by representatives of NVIDIA, the demand for entry-level graphics solutions for notebooks is to blame for the consistent decline in revenue. For the entire year, revenue in this area, however, grew by 25%, and the increase in demand for entry-level graphics for notebooks this time should be thanked.

Considering the dynamics of revenue for the 2021 fiscal year as a whole, we can note its increase by 53% to 6.675 billion, which is also a record value for NVIDIA. Graphic solutions for the year increased revenue by 29% to 834 billion, the remaining 841 billion were received in the direction of computing and network solutions, here the annual revenue growth was 109%.

Источник изображения: NVIDIA

Image source: NVIDIA

In annual terms, the gaming segment added 41% to 759 billion. It turns out that the share of gaming solutions in annual revenue did not exceed 46.5%, but the data center business, which grew by 124%, brought 696 billion in revenue, or 40% of the total amount. Professional graphic solutions in annual terms showed negative dynamics of revenue (minus 13%), as well as the automotive direction (minus 23%).

At the reporting event, the CFO of the company Colette Kress estimated the contribution of miners to NVIDIA’s revenue for the fourth quarter at 00-300 million. The recently presented specialized accelerators of the CMP family for mining cryptocurrencies in the current quarter can bring the company about 0 million. (Jen-Hsun Huang) added that the release of such solutions is unlikely to ever become a source of serious income for the company. Colette Kress explained that the GPU shortage is unlikely to be overcome until the end of the first fiscal quarter, which ends in late April.

In the coming fiscal quarter, NVIDIA expects to gain about $ 3 billion. This value turned out to be higher than the market’s expectations, the company’s stock price after the close of trading rose by 2.53%.

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