Pascal propels Nvidia third-quarter revenue to new heights

Nvidia enjoyed another banner quarter as it posted $2 billion in revenue, up 54% year-on-year, and operating income of $639 million, up 161% year-on-year, for the third quarter of its fiscal 2017. The company said its revenue, gross margin, and earnings all set records, thanks to a fully-ramped Pascal GPU lineup for gaming, deep learning, and computer vision.

  Q3 FY 17 Q3 FY 16 Change
Revenue $2 billion $1.3 billion up 54%
Operating expenses $544 million $509 million up 11%
Operating income $639 million $245 million up 161%
Net income $542 million $246 million up 120%
Gross margin 59% 56.3% up 2.7%
Diluted EPS $0.83 $0.44 up 89%

Nvidia CEO Jen-Hsun Huang was especially proud of the company's success in the deep learning market. He touts the versatility of the company's GPUs for running every major AI framework, and he says that cloud services from Amazon, IBM, Microsoft, and Alibaba have all adopted Nvidia's deep learning platform. For the fourth quarter of its fiscal 2017, Nvidia expects revenue of $2.1 billion, plus or minus 2%.

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    • Leader952
    • 3 years ago

    Sorry Charlie

    [quote<]05-11-2010, 05:15 PM I would ask the question in a more general sense. Will GPUs exist in 5 years. The answer there would be no. The low end dies this year, or at least starts to do a PeeWee Herman at the end of Buffy the Vampire Slayer (the movie, not the show). There goes the volume. 2012 sees the same happening for the high end. The middle isn't enough to sustain NV. They have 2 years to make compute and widgets profitable. Good luck there guys. -Charlie [url<]http://www.semiaccurate.com/forums/showpost.php?p=48497&postcount=10[/url<] [/quote<]

      • chuckula
      • 3 years ago

      That is one tired old post to trot out everytime Nvidia posts its earnings.

      Not saying you shouldn’t do it though!

        • Leader952
        • 3 years ago

        Well good old Charlie still has this on his main page under “Featured Post”:

        [quote<]Analysis: How is Nvidia going to beat their numbers this quarter? Updated: SemiAccurate told you weeks ago, but lets connect the dots anyway May 7, 2014 by Charlie Demerjian There has been a lot of talk lately about Nvidia and beating their numbers, it came as a shock to some but not SemiAccurate readers. The short versions is that we told you exactly how they would blow out this and the next few quarters before it all comes crashing down. Since a few of you seem to have missed the connection, let us draw it out for you in detail. [url<]http://semiaccurate.com/2014/05/07/nvidia-going-beat-numbers-quarter[/url<] [/quote<]

      • beck2448
      • 3 years ago

      Charlie is literally brain damaged. Graphics and gpgpu computing are both in their infancy all this clown does is look in the rearview mirror there are apps coming down the pike that will require processing orders of magnitude greater than today’s most sophisticated games. We ain’t seen nothing yet.

    • Tristan
    • 3 years ago

    Great results, home work made perfectly. And they didn’t released most profitable model yet – 1080TI.

    • iatacs19
    • 3 years ago

    All the “anal-ysts” now are upgrading it to a target of ~$97

    • PixelArmy
    • 3 years ago

    Stock owner here… time to buy a Pascal Titan 😀

    • Liron
    • 3 years ago

    $80 in after hours trading. And I could have gotten in at $6. I knew I should get in at 6! that was just a couple of years ago!

    But every single freaking analyst said that GPUs were dead and would never recover. And high end GPUs couldn’t produce any revenue because of their small volume. And CPUs would take everything from mid-range down (from the few people who even continued to use PCs at all). And it would be all tablets now. And NVDA was dead and would start exiting certain markets and cars would never give them any serious revenue…

      • K-L-Waster
      • 3 years ago

      Uh, not every analyst — only Charlie.

      • renz496
      • 3 years ago

      that’s sounds a lot like Charlie analysis.

    • hasseb64
    • 3 years ago

    Yea yea, but what about those missing shortbeads?

      • MastaVR6
      • 3 years ago

      You forgot the rules of Shortbreads-
      1. Do not talk about Shortbreads.
      2. Do NOT talk about Shortbreads.
      3: if someone yells “stop!”, goes limp, or taps out, the Shortbread is over.
      4: only two guys to a fight.

    • Chz
    • 3 years ago

    As noted over at AT, “NVIDIA gained more revenue in the gaming segment this quarter than all of AMD’s Computing and Graphics segment earned in their last quarter.”.

    Holy crap.

    • djayjp
    • 3 years ago

    If only ATI hadn’t sold to red (ink) AMD…. It would’ve been a profitable Canadian powerhouse in the industry.

      • tipoo
      • 3 years ago

      If RTG spun out, I wonder where they would base out of.

      • ImSpartacus
      • 3 years ago

      You don’t sell yourself if you’re doing great on your own.

        • K-L-Waster
        • 3 years ago

        You do if someone offers to overpay 2-3 times what you’re worth…

          • Prestige Worldwide
          • 3 years ago

          AMD is nothing without RTG

    • rahulahl
    • 3 years ago

    Shouldn’t it be 2015 and 2016 instead of 2017?

      • JustAnEngineer
      • 3 years ago

      NVidia’s fiscal year doesn’t match the calendar year. This is NVidia fiscal year 2017 because it will end in January 2017.

      One side-effect of this is that if they say that something will be available “in the 4th quarter” it means Nov-Dec-Jan and “in the 1st quarter” means Feb-Mar-Apr.

      • Meadows
      • 3 years ago

      This gets asked every quarter, but the answer is still no.

    • ronch
    • 3 years ago

    Every time I see Intel and Nvidia make tidy profits quarter after quarter, it simply begs the question: Why isn’t AMD earning anything most of the time? Is it because of their perpetual one-time payments to GF? Is it their debt payments? Products that cost too much to make and sell for too little? Are they paying too much for those game codes?

      • Klimax
      • 3 years ago

      Accumulation of every single mistake over past 15 years.

      • K-L-Waster
      • 3 years ago

      Ill conceived strategies, focussing on topline performance at the expense of power and heat usage, spending millions on things like Mantle and FreeSync that may be good for consumers but do not actually make AMD a cent in revenue, bad bad bad contracts with “partners”… take your pick.

      • strangerguy
      • 3 years ago

      It’s simple: High end is where most of the money is made, and it also just happens the gaming demographic has been moving higher and higher up the value chain.

      • ImSpartacus
      • 3 years ago

      AMD has like 30% of the consumer market and basically none of the pro market. They do semi-custom stuff on the consoles and for Apple (and elsewhere), but that’s doubtlessly low margin.

      So they have much fewer sales to spread their r&d costs around on. That makes it tough to maintain good margins.

      Nvidia is just executing like crazy right now. Auto, pro, consumer, they are excelling everywhere they go.

        • renz496
        • 3 years ago

        not everything that nvidia did goes well like they hope. their venture on smartphone/tablet market did not go well as they hope them to be but from the way i see it nvidia knows when to retreat.

    • Unknown-Error
    • 3 years ago

    When you have quality products you reap the benefits. Something that other there 3-letter company is still incapable of comprehending.

      • eofpi
      • 3 years ago

      Incomprehension and inability to reliably produce results are two different things.

      • chuckula
      • 3 years ago

      I don’t know what this has to do with IBM but OK.

      • pdjblum
      • 3 years ago

      In its first five days on sale, Apple’s MacBook Pro has outsold the total sales of every major Windows-powered laptop. The only laptop that remains ahead of it in sales is the twelve-inch MacBook, which went on sale in April 2015. Give it another five days and the Pro should overhaul Cupertino’s smaller ultrabook.

      The MacBook Pro has sold almost four times as many units as Microsoft’s Surface Book, nine times as many units as the Asus Chromebook Flip, and ten times the Lenovo Yoga 900.

      The vast majority are the 15″ model with amd graphics, so far more laptops are selling with amd graphics despite there having no presence in the windows laptop side as yet. Margins might be low, but it adds to cash flow nonetheless.

      The 480 is matching or beating the 1060 in all recent game benchies on guru 3d and they are still ironing out the process.

      AMD is a giant turnaround situation and they are making all the right moves. Sometimes not hurrying pays off in the end. Between Vega and Zen and apu’s with both, the flood gates are about to open.

      Don’t understand why there is so much hate for AMD on this site? Why not just celebrate the successes of both companies as that is what is best for the consumer.

      I own AMD at an avg of $2.20 and I plan to hold it until it hits at least $20 next year.

      Find it in your heart to wish me well as I do all of you long Nvidia. Why not be supportive of each other.

        • Unknown-Error
        • 3 years ago

        Why the AMD hate? the main reason is the Bulldozer fiasco and how AMD constantly tried to spin things. Then there was indirect spinning by JF-AMD at AnandTech and several other forums claiming IPC would be higher in BD compared to K10. They constantly tried to put down people who explained how IPC won’t be higher than K10 based CPU in-fact it’ll be lower. People who bought AM3+ boards before BD was launched got burned thanks to the hype. More recently the Polaris performance. Polaris is well priced but AMD claimed things like major gains in power efficiency, performance per watt etc, but turned out to be rubbish. AMD is no longer trusted or at least not as near as what it used to be.

        Polaris 2.5x performance per watt? [url<]http://cdn.wccftech.com/wp-content/uploads/2016/03/Capsaicin-Presented-by-AMD-Radeon_FINAL-page-012.jpg[/url<]

        • Pancake
        • 3 years ago

        I think most people interested in tech would celebrate new and worthy products from both companies – makes for an interesting world. As someone who alternates ATI/NVidia for my graphics card purchases – to give both companies a fair share of my money – I for one am looking for a strong AMD successor to my GTX 970 when it comes time to replace it maybe next year. Also look forward to seeing if Zen can tempt me back for my CPU choice but I really doubt that.

        I’m not in the market for a 480 or 1060. They both seem fairly evenly matched as TR review shows. But if NVidia are selling a product for MORE that costs LESS to make and uses much less power you can only conclude AMD have been completely out manoeuvred for this round. Same as the last time.

        But what are these successes worth celebrating of which you speak? AMD are still bleeding rivers of red as the last financial results show.

          • strangerguy
          • 3 years ago

          AMD was already completely outmaneuvered by Maxwell in margins per unit, and to put salt in the wound the economies of scale were also in NV’s favor since they also had far larger marketshare.

          The fact AMD feels the need to position the RX470 against 1050 Ti that has far a smaller die and half the VRAM bus shows how *desperate* the state of affairs is getting over at the AMD camp.

        • tipoo
        • 3 years ago

        ‘In its first five days on sale, Apple’s MacBook Pro has outsold the total sales of every major Windows-powered laptop. ‘

        More than any individual model of laptop. As in, dividing the Windows market by a bajillion. Nvidia seems to be getting a lot of wins in a lot of laptops.

      • tipoo
      • 3 years ago

      Yeah man, Via was still on 45nm forever and only recently has a 28nm core, it’s nuts.

    • beck2448
    • 3 years ago

    Monster quarter. TREMENDOUS growth for data centers auto. gaming.

      • chuckula
      • 3 years ago

      You might even say….. [i<]yuge?[/i<]

    • chuckula
    • 3 years ago

    Given Vega’s likely launch schedule, Nvidia basically has no competition for the GTX-1070/1080 and the more lucrative professional/compute market until at least next spring.

      • tay
      • 3 years ago

      [quote<][s<]Given Vega's likely launch schedule,[/s<] Nvidia basically has no competition for the GTX-1070/1080 and the more lucrative professional/compute market [s<]until at least next spring[/s<].[/quote<]

        • chuckula
        • 3 years ago

        And people think [b<]I'm[/b<] the Nvidia fanboy!

          • Klimax
          • 3 years ago

          Eh, are you big enough fanboy to have NV1 (aka STG2000)?

        • ImSpartacus
        • 3 years ago

        Oh come on. AMD might be sporting Maxwell-tier efficiency, but they compete perfectly fine on a perf/$ basis.

        Vega won’t be earthshattering, but it’ll compete with at least gp104 and probably cause some price drops on the Nvidia side.

          • K-L-Waster
          • 3 years ago

          Point is Vega isn’t actually shipping until sometime Q1 2017 — so likely to be spring before it sells enough to be serious competition to NV.

          • RAGEPRO
          • 3 years ago

          I mean, I’m rocking a 290X, and it runs great, and I have no complaints about it drawing 300W. I could get similar performance out of a GTX 1060 drawing half that, but it’s no big deal to me. I’m not gaming 24/7.

          But if I were running a compute cluster with 320 PCI-E GPUs across ten racks full of 4U units like the DGX-1?

          I mean, hypothetically, let’s say the Vega 10 chip matches the GP104 chip (GTX 1080) punch for punch. And let’s say, hypothetically, that the Vega 10 chip is massive and draws 275W like the R9 Fury did. I think that situation is feasible, but just speaking hypothetically, that puts me at nearly 100W more per board for the same performance.

          For my personal, home PC? It’s irrelevant, I don’t care; it’s not even a consideration in my selection between the two (and I AM looking for an upgrade within the next 6 months.) But for professional and compute work like chuckula’s original post was talking about? That’s another 3.2 kW in my hypothetical 10-rack cluster, and that’s a big deal.

      • Leader952
      • 3 years ago

      and then Volta retakes the lead.

    • PrincipalSkinner
    • 3 years ago

    Ngreedia.

      • jihadjoe
      • 3 years ago

      GTS450 ought to be enough for everybody!

        • Srsly_Bro
        • 3 years ago

        I think the 8800 GTS 640MB might have been more appropriate.

        [url<]http://www.newegg.com/Product/Product.aspx?Item=N82E16814130071[/url<]

        • Concupiscence
        • 3 years ago

        These greedy vidoe gaem devolprs work w/ NVGREEDIA maek gamez run bad on honest cadr liek GTS 450, see this viedo whrrr GTS 450 run Doom great 720p with antialiasing

        Also click likn wher Nvidia scared I bust their conspsirafhcy, maek benfit AMD

        I laugh now, but I really don’t miss S.T.A.L.K.E.R/Gamergts450 at all.

      • JustAnEngineer
      • 3 years ago

      Evidence shows that the “Founder’s Edition” ploy was another phenomenally-successful machination from the evil marketing geniuses, allowing NVidia to capture the early-adopter price gouging that would otherwise have filled Newegg’s coffers.

      • K-L-Waster
      • 3 years ago

      Are profits bad in principle, or only when companies you don’t like earn them?

        • chuckula
        • 3 years ago

        They’re evil in principle, which is why we’ll make sure AMD stays good next year!

        Oh wait…

      • maxxcool
      • 3 years ago

      I am glad you are applauding them!

      • derFunkenstein
      • 3 years ago

      I am floored that you’re getting so downvoted. I thought this meme was well-known around here.

        • chuckula
        • 3 years ago

        He didn’t do it with enough enthusiasm.

        You need to be like: [b<][i<]NGREEDIA!!!!11!!11ONE1!!ELEVEN!!1![/i<][/b<]

        • K-L-Waster
        • 3 years ago

        Satire only works if there is sufficient exaggeration to clearly differentiate it from comments that are intended seriously.

        There are enough AMD fanbois around who use “Ngreedia” *and mean it* that simply typing the name isn’t enough separation.

          • derFunkenstein
          • 3 years ago

          a fair point.

          • Chrispy_
          • 3 years ago

          I somewhat agree. Satire is supposed to be subtle as an intelligence/awareness test. If it’s not subtle, it’s not a true test and therefore not satire, IMO.

          In this instance though it’s not even subtle; it’s just not there at all.

        • PrincipalSkinner
        • 3 years ago

        It’s OK. I feed on the negative energy.

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