Nvidia earnings call: GPU pricing, crypto demand, and TAMs


For fiscal 2019, it plans to return United States dollars 1.25 billion.

Revenues were $3.21bn, up 66 per cent on the year-ago quarter.

"Channel prices for our GPUs are beginning to normalize, allowing gamers who had been priced out of the market last quarter to get their hands on the new GeForce at a reasonable price", Nvidia's Chief Financial Officer Colette M. Kress said.

On a broader basis, Nvidia posted earnings of US$1.88 per share on revenue of US$3.2bln, zipping past Wall Street's expectations of US$1.47 per share on revenue of US$2.9bln.

"Cryptocurrency demand was again stronger than expected", says CFO, Collette Kress, "but we were able to fulfill most of it with crypto-specific GPUs, which are included in our OEM business at $289 million".

And that would obviously be good news for gamers, particularly when you consider that yesterday, we saw GeForce graphics cards come back into stock at retailers in a big way (following recent shortages).

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Crypto chip sales made up about 9% of Nvidia's total sales last quarter.

Nvidia has announced record revenue for the first quarter of its financial year, but it comes with a warning: The cryptocurrency boom that has buoyed the company's high-end graphics card sales may be coming to an end. CEO, Jensen Huang stated in the report that Nvidia's "datacentre business achieved another record and gaming remained strong". Susquehanna's Christopher Rolland anticipated crypto sales of about $200 million, according to an estimate before the earnings were released.

Games hardware remains the biggest market for Nvidia by far. Nvidia managed to secure a deal with several key auto manufacturers, and its DRIVE Pegasus AI computing platform with Xavier SoC will probably get the company some future wins.

Mosesmann reiterated his buy rating on Nvidia and raised his price target to 315 from 300.

The automotive department is still hanging on, and although it is the lowest earner compared to other departments, it still brought U.S. $145 million, up by 10 percent compared to the last quarter and 4 percent compared to the same quarter a year ago. Gill expects data-center and autonomous-driving markets to continue to provide robust growth.