Nvidia rides AI and deep learning to strong first-quarter financials

Nvidia's first-quarter financial results are in, and they'll probably continue to make other tech companies green with envy. The GPU maker raked in $1.94 billion in revenue for its fiscal 2018 first quarter, up 48% from a year ago. It also enjoyed operating profit of $554 million, up 126% from a year ago. Gross margin increased 1.9% from a year ago to 59.4%.

Surprising nobody, Nvidia says growth in demand for its GPUs across all of its businesses drove these results. On the way to $1.56 billion in GPU revenue, the company highlighted especially strong demand for its gaming and data center products. Businesses snapped up $409 million of the company's GPU compute accelerators and related services, a claimed 186% year-on-year increase.

The $43 million in revenue Nvidia got from its patent-licensing agreement with Intel this quarter marks the final such payment from that arrangement. Nvidia ended the quarter with $6.21 billion in cash on hand, down from $6.8 billion in the last quarter. The company says the decrease "was primarily related to principal payments for early exercises of our convertible notes."

For the second quarter of its fiscal 2018, Nvidia expects revenue of $1.95 billion, plus or minus two percent. If that guidance holds, it would reflect a 50% year-on-year increase. Gross margin for the next quarter is projected at 58.4%, up 0.8% from a year ago.

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