NVIDIA Corporation 2Q F2018 Earnings Beat Sends Shares Lower

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11 August, 2017

Nvidia, which has been diversifying into newer technologies including self-driving cars and artificial intelligence, originally came into prominence in the gaming industry for designing graphics processing chips, that are also used for cryptocurrency mining.

Overall, Nvidia reported revenue jumped 56% to $2.2 billion, a quarterly record and more than the $2 billion Wall Street analyst had expected.

For the third quarter, Nvidia said it expects revenue to be US$2.35 billion, plus or minus 2 per cent. Analysts were expecting US$2.13 billion. Consensus had been looking for GAAP earnings of 70 cents per share on $1.96 billion in revenue.

But the report disappointed investors. Shares have risen 181 per cent over the past year, the strongest performance across the benchmark S&P 500 index. As a result, he's profiting off NVIDIA 2Q F2018 earnings, as the chip maker's stock slumped in after-hours trade falling by more than 4% to as low as $157.95, although Left has said he expects it to fall much further at some point. CNBC reported in June that an Nvidia-based mining GPU had been listed on Asus's website, but Nvidia had not previously announced the card.

Patrick Moorhead, president and principal analyst with Moor Insights & Strategy, cited a "very solid quarter" driven by its GeForce graphics chips as well as its Tesla data center processors and new Tegra mobile processors.

"A growing number of vehicle and robot-taxi companies are choosing our DRIVE PX self-driving computing platform", NVIDIA Founder and CEO Jensen Huang said in a statement.

Revenue from data centers surged 175% year-on-year to $416 million. But it has a growing business in providing high-performance computing chips for data centers, artificial intelligence, machine learning and self-driving cars.

Graphics cards are increasingly being bought by cryptocurrency miners as the likes of Bitcoin and Ethereum continue to grow in popularity, and we've heard quite a lot lately about the shortage of AMD's GPUs as a result - but of course, Nvidia's stock is also being bought up by these non-gamer types, as the firm warned in a recent earnings call. Use of Google's Tensor Processing Unit can be rented on its cloud servers, however. Revenue from professional visualization for high-end rendering such as that used in virtual reality, rose 10 percent, to $235 million.


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