Nvidia brings in record revenue for its fiscal Q1 2019

So, how much money is Nvidia making? A whole lot of it, apparently. The company already saw a record fiscal Q4 2018, and now it's published numbers for its fiscal Q1 2019. If you haven't guessed it by now, Nvidia saw record revenue of $3.21 billion, a whopping 66% rise from a year ago. The company pulled in $1.3 billion in operating profit, a 134% jump since a year past. Gross margins increased further to 64.5%—an increase of a 2.6 percentage points on the year. The company attributes that margin growth to “higher value platforms in the GPU segment,” which we take to mean sales of high-margin, high-end graphics cards.

The largest piece of the revenue pie is by far the GPU segment, to the tune of $2.77 billion—a 77% increase year-on-year. Most of that cash was made by the gaming sub-subsegment, which accounted for $1.7 billion all by itself and saw a 68% rise from a year ago. Nvidia attributes those gains to the popularity of eSports titles, battle royale-style games, and “AAA cinematic games.”

Still under the GPU header, Nvidia says the datacenter business saw 71% year-on-year growth to $700 million in revenue, thanks to its Tesla V100 units, DGX systems, and HPC design wins. Professional visualization also made Nvidia a tidy $251 million in revenue, or 22% more than a year ago. The company notes that its OEM sales totaled $289 million in revenue (a 148% rise on the year) thanks to “GPUs for cryptocurrency mining.” Seems there's real money to be made there after all, eh?

Those wondering about the income from the Nvidia SoCs inside the Nintendo Switch have an approximate answer. Nvidia's Tegra Processor business pulled in $442 million in revenue, or 33% more since a year ago. That amount also includes $145 million from the Automotive business, which includes Drive PX, infotainment modules, and “development agreements with automotive companies.”

For its fiscal 2019 second quarter, Nvidia's accountants expect the money train to keep rolling. The company hopes to bring in $3.1 billion in revenue, plus or minus two percent, coupled with a 63.3% gross margin.

Comments closed
    • chuckula
    • 1 year ago

    $700 million in Volta sales puts Volta revenue about $170 million higher than what AMD got from Epyc and consoles combined in the same quarter.

    Nvidia doesn’t even need an ARM miracle chip to bring it in.

      • tipoo
      • 1 year ago

      If I’m not mistaken Nvidias self driving car cashflow also eclipsed most of AMDs business last release.

      It’s easy to forget how tiny AMD has become in comparison to the two main companies they face. As far as I could glean Nvidia was plopping 3x more R&D money into each new GPU architecture as AMD.

        • blastdoor
        • 1 year ago

        Yes indeed…. it’s amazing they survived and are at all competitive.

          • chuckula
          • 1 year ago

          Tell me about it!

          After Apple blocked Nvidia from its products Nvidia not only didn’t throw itself a multi-decade pity party but it actually made real profits!

          It must be that it cheats by leaning on its x86 license.

            • tipoo
            • 1 year ago

            And made such a wicked efficient product that a lot of Mac loyalists are begging for Apple to get over it.

            Though Apples Polaris and Vega implementations aren’t as behind per watt because they underclock them a bit, disproportionately reducing power draw.

            • DancinJack
            • 1 year ago

            ::raises hand::

            • NoOne ButMe
            • 1 year ago

            I don’t think anything short of a miracle could make Apple forget the whole trying to do something which could completely stop iPhone and iPad sales.

            Has anyone done a large scale testing of effect of underclocking Nvidia GPUs in terms of performance? For their desktop GPUs.

            I am rather curious.

            • tipoo
            • 1 year ago

            Jen-Hsun and Apple, the mutual hardheadedness denies us ideal products with them both.

            External GPUs may be our main salvation here if they start making better web drivers.

          • Klimax
          • 1 year ago

          Main question is if they can sustain that. (Just competing on price got them into hole in the first place)

          • tipoo
          • 1 year ago

          It’s almost a miracle they survived, but their era of underperformance also coincided with historically cheap debt. They have an Intel-competitive architecture now, but debt also isn’t going to be so cheap, so it’s now two horses racing each other on AMDs fate.

            • blastdoor
            • 1 year ago

            AMD bas a billion in cash and about 1.4 billion in debt.

            That’s not a bad position at all… so long as they remain profitable for a while.

            Remember, rising interest rates means the interest they earn on the “cash” goes up, too. (it’s not really cash — it’s more like money in a money market fund).

            The thing that’s always a bit scary for AMD is that their existence depends on Intel providing a price umbrella. But Intel has almost always done that. The single exception that I can think of was when Intel was slashing the price of their inferior Netburst products in an attempt to stave off AMD’s marketshare gains until Core came out. But that was not exactly a bad situation for AMD — I’m sure they wouldn’t mind repeating it.

            • tipoo
            • 1 year ago

            I see, I missed them chipping away at the debt to that extent.

            The historic low debt rates did keep them afloat for the Bulldozer years though.

            • blastdoor
            • 1 year ago

            I don’t blame you for missing it…. because I really don’t understand how it happened.

            Even with super low interest rates, I don’t understand how they survived. I guess it must be the combination of all the layoffs, selling off assets, low interest, console sales, bitcoin, and that money’s paw Jerry Sanders bought from a mysterious Turk working in Dresden.

            • Srsly_Bro
            • 1 year ago

            Cash/cash equivalents*

          • Action.de.Parsnip
          • 1 year ago

          Thats the power of pulling in the right folks with the right management. You get a Ryzen and get another chance at winning things

        • Action.de.Parsnip
        • 1 year ago

        They’ve been plopping in way more since gt200. It’s not even remotely a recent thing

      • the
      • 1 year ago

      Even at>$10,000 per card, Volta still has a respectable number of raw sales in terms of units (between 50k and 60k).

      At roughly 64 die per wafer and accounting for yields, nVidia probably had a 10,000 water run for GV100.

      • K-L-Waster
      • 1 year ago

      Funny how we never see the “Nvidia needs to stop wasting money on Tegra” posts anymore.

        • Action.de.Parsnip
        • 1 year ago

        Tegra went nowhere and did nothing though.

          • chuckula
          • 1 year ago

          [quote<]Those wondering about the income from the Nvidia SoCs inside the Nintendo Switch have an approximate answer. Nvidia's Tegra Processor business pulled in $442 million in revenue, or 33% more since a year ago.[/quote<] WE WISH WE COULD GO NOWHERE AND DO NOTHING TOO! -- AMD

            • Action.de.Parsnip
            • 1 year ago

            What 1 design win. After how much effort? The years and years wasted on the tegra program and it going nowhere except that one time. Hard to call it worth it.

            • chuckula
            • 1 year ago

            While I agree that Tegra isn’t taking over the world, if you put those numbers up next to what competitors are making in the high-end console market, the better question would be why AMD has thrown so many resources at its attempt to monopolize the console space when the revenues just aren’t worth it.

            • Action.de.Parsnip
            • 1 year ago

            Other way round wasn’t it? We’ll make whatever you want for beans. Tbh it’s what kept the lights on for a good couple of years at that place.

            • K-L-Waster
            • 1 year ago

            It’s not just 1 design win.

            [quote<]That amount also includes $145 million from the Automotive business, which includes Drive PX, infotainment modules, and "development agreements with automotive companies."[/quote<] Just because it isn't a category TR readers deal with doesn't make it a money loser.

            • Action.de.Parsnip
            • 1 year ago

            Drive is denver based though? And thats another sea of red ink that goes back years. Derivative money pits.

            • jihadjoe
            • 1 year ago

            One design win (with IBM) was all it took to make Intel the #1 chipmaker in the world.

      • kuttan
      • 1 year ago

      AMD don’t need to have a gold subscription at Techreport for shilling 24×7 for some companies for revenue. AMD still earned money in Q1 2018 were Chuckula could never ever earn such amount of money in his whole life! Why waste time and effort in shilling ? 😀

        • chuckula
        • 1 year ago

        So basically you don’t have a factual argument that anything I said is wrong.

        [url=https://techreport.com/discussion/33531/amd-ryzen-7-2700x-and-ryzen-5-2600x-cpus-reviewed?post=1075551<]How's that been working out for you?[/url<]

          • cegras
          • 1 year ago

          [url=https://www.youtube.com/watch?v=xN1WN0YMWZU<]Why are you so emotionally invested?[/url<]

          • kuttan
          • 1 year ago

          What is not factual with my comment ? Since you compared AMD and Nvidia, I compared AMD and you 😛

          Its hilarious that you still in anguish over my comments, in response pointing to my previous comments. Feeling victorious now ? Now use your Gold subscriber Down Vote Power that will help you feel even more victorious 😀

    • jihadjoe
    • 1 year ago

    The year of crypto was good for everyone except the consumer.

    AMD sold everything to miners, Nvidia sold some stuff to miners and took what was left of gamers, + monopolized HPC.

    ASIC-resistant coins increased RAM requirements and the RAM cartel now has more money than God.

      • tipoo
      • 1 year ago

      God said screw it and started mining with infinite compute power, killing the cottage ASIC and mining GPU industry.

      Dinosaur eat man and…I forget where I was going with this.

        • Pville_Piper
        • 1 year ago

        Dam… and you were really starting to roll…

          • K-L-Waster
          • 1 year ago

          Yeah… I was starting to hear epic cinematic music and I thought I saw Conan the Barbarian’s silhouette approaching.

          • tipoo
          • 1 year ago

          [url<]https://www.youtube.com/watch?v=KHGHkGmOmD4[/url<] 😉

        • kvndoom
        • 1 year ago

        It will all become clear on June 22nd.

          • chuckula
          • 1 year ago

          June 22, also known as DOS day because DOS 6.22 was BEST DOS!

      • btb
      • 1 year ago

      Hopefully some of all those profits will be redeployed back into R&D, so we will benefit from better/faster products somewhere down the line. At least we can be happy that AMD finally made some money so we can have some competition for Intel.

      • spiketheaardvark
      • 1 year ago

      consoles inherit the earth

      • DragonDaddyBear
      • 1 year ago

      Look, not to fan-boy this (and get a crazy number of down votes in the process), but AMD didn’t sell cards to miners. They don’t sell their reference cards, they sell their chips to card makers. They even went so far to try and make it so builders could build a computer with Vega when it came out. It was at least an effort. They tried to get cards into gamer hands. While NVidia technically did sell cards to miners (they do sell their own “founder” cards), I don’t blame them. They released stuff at MSRP, or a lot lower than resellers on other sites, when they had stock.

      Crypto “coins” are to blame, but I don’t think we can flame the chip makers for this. It’s all people.

        • chuckula
        • 1 year ago

        Your failure to blame one company as being evil for doing behavior X while pretending that the other company either didn’t do behavior X or that the other company is actually morally superior for doing behavior X because reasons will get you NOWHERE!

        • derFunkenstein
        • 1 year ago

        You’re correct. I think all jihadjoe means is that since AMD’s crypto performance is way better than its gaming performance (at current prices, anyway), then pretty much everything they sold was crypto-related. Or something.

          • jihadjoe
          • 1 year ago

          Yeah this.

          Also I’m not blaming anyone for anything. Companies have a fiscal duty to do what’s best for them after all. I’m just saying the whole situation sucked for us consumers.

        • Beahmont
        • 1 year ago

        While this is more or less true as the re/e-tailers and board partners are the ones who made out like oil barons compared to their usual still quite vast take home haul, AMD and Nvidia almost assuredly did not sell their chips at a lose or likely without a healthy markup to cover their own cost.

        AMD and Nvidia still made an insane amount of money from miners simply because the volume of sales was still way up, and miner and crypto currencies were the single biggest and probably absolute biggest driver of the increased sales volumes.

        And we are reasonably sure of these facts because Nvidia’s GPU division didn’t post a 77% increase all on it’s own or by chance.

        So please spare us the “Let’s not malign these poor companies for doing what companies do and selling their products to the current largest group of buyers even though it hurts their previous largest buy and still easily second largest group of buyers’ routine.

        AMD and Nvidia could have done much more to combat miners buying up all the cards in sight, but they didn’t because doing so would have hurt sales volumes and therefore profit. There’s nothing wrong with that per se, but let’s not pretend that any of their efforts were more than token PR gestures or that either of them care who actually buys their cards so long as their cards get bought.

          • K-L-Waster
          • 1 year ago

          So you’re saying GPU makers, AIB makers, and retailers should vet customers before selling them GPUs to make sure they’re the “right kind of customer”?

          It’s a piece of electronic equipment. Once a customer buys it what they do with it is their business. They could buy it and put it on a shelf to gather dust if they want.

            • Beahmont
            • 1 year ago

            The opposite actually. DragonDaddyBear was the one making the ‘AMD tried to get GPU’s in the hands of games so give them credit’ argument.

            I’m the one pointing out that’s a silly argument. That’s why I said there’s nothing wrong with it. Just that it might now be the best long term strategy. And it would have been fairly easy to prevent bulk purchases if anyone actually wanted to prevent bulk purchases with a little bit of coordination. If done early that would have stemmed the tide crypto-mining. It wouldn’t be the best business decision for any of them, but it was physically possible for them to have done more if they wanted to.

            Which is why any of those company’s PR efforts in that regard should buy said companies nothing.

      • Action.de.Parsnip
      • 1 year ago

      I really hope this ram situation dies in a fire soon. I want to build a new pc and get a half decent graphics card without selling an organ

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