Demand for virtually all of Nvidia’s product lines is growing, and as a result, their third-quarter financial report for this year reported an absolute revenue record. The company had sales of $ 7.103 billion for the first time in its history, driven by unprecedented demand for its high-end gaming, data center and professional visualization (ProViz) products. The company is still unable to meet demand for all of its products and has had to enter into long-term contracts with its suppliers worth about $ 3.4 billion to secure production capacity to solve the problem, says Tom’s Hardware.
Amvid’s architecture for gaming and data center GPUs, introduced last year by Nvidia, has now reached all product lines and these products are fully up and running. The company can now offer Ampere-based products in all market segments and in virtually all price categories. Meanwhile, as demand for GPUs exceeds supply, the company may charge very high average selling prices (ASP) and very high margins
Nvidia’s revenue of $ 7.103 billion as of October 31, 2021 was 9 percent higher than in the previous three months and 50 percent higher than in the third quarter of the previous fiscal year. In addition to record sales, the report also reported a net profit of $ 2.464 billion, an increase of 84 percent from $ 1.336 billion in the third quarter of fiscal 2021.
Toys, Mining, OEMs
Nvidia gaming hardware (which includes GeForce GPUs and console SoCs) has traditionally been the company’s leading business, as GeForce is one of the best graphics cards available for purchase. In the third quarter of fiscal 2022, the company’s revenue from games was $ 3.221 billion, a 5 percent quarter-over-quarter and 42 percent year-over-year increase. According to the company, almost all of the desktop Ampere-based GeForce RTX GPUs were Lite Hash Rate models that are not really suitable for mining.
Nvidia also sold $ 105 million worth of CMP ( crypto mining processor) for mining, down $ 266 million from the previous quarter and $ 150 million in the first quarter, which may indicate that miners did not actively purchase new GPU-based assets in the third quarter. Nvidia says it cannot predict future demand for its CMP product line as it depends on the pricing of Ethereum and other cryptocurrencies
Low-cost non-gaming GPUs for OEMs sales fell to $ 129 million as the company focused on higher-end GeForce products for gamers, while low-cost, stand-alone GPUs are unlikely to provide tangible advantages over advanced integrated GPUs.
Artificial Intelligence (AI) and Machine Learning (ML) are used by many companies and since Nvidia Ampere GPUs were developed for AI and ML, they are not surprisingly, demand for computing products is breaking records. Demand for servers is also growing, with Nvidia’s Mellanox products generating high sales. As a result, the company’s data center revenue reached $ 2.936 billion in the quarter, up 24 percent from the previous quarter and up 55 percent from a year earlier.
Sales of Nvidia’s professional visualization graphics cards (formerly Quadro) were $ 577 million in the third quarter, an increase of 11 percent quarter-over-quarter and 144 percent year-over-year. The delivery of professional hardware is driven by several factors, including upgrading existing machines to more powerful workstations with an Ampere interior, a new home work paradigm, and deploying professional GPUs in data centers to support telecommuting
Nvidia’s automotive business has always been cited as one of the key revenue and profit generators of the future, but so far its results have seemed weak compared to Nvidia’s success with gaming machines, workstations and data centers. In the third quarter, the company’s automotive unit generated revenue of $ 135 million, an increase of 8 percent compared to the third quarter of 2021, but a decrease of 11 percent compared to the same quarter last year.
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