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Nvidia does well by losing its PC addiction

by on18 February 2016


Beat Wall Street's expectations

Graphics chip maker Nvidia reported earnings for its fourth fiscal quarter that surprised the cocaine nose jobs of Wall Street.

While the results show that while the PC industry is still suffering, people are still buying rather a lot of Nvidia chips. Nvidia's King Jen-Hsun Huang seems to have moved his kingdom out of trouble.

The Santa Clara, California-based company reported non-GAAP earnings of 52 cents a share on revenue of $1.4 billion.

Analysts had expected non-GAAP earnings of 32 cents a share on revenue of $1.31 billion. The results appeared to surprise Nvidia which had predicted revenue of $1.3 billion, plus or minus 2 percent.

Nvidia’s graphics processing unit revenue was up 10 percent. Gaming revenue was up 25 percent from a year ago, thanks in part to interest in virtual reality and strong sales of holiday games.

King Huang proclaimed: “We had another record quarter, capping a record year. Our strategy is to create specialized accelerated computing platforms for large growth markets that demand the 10x boost in performance we offer. Each platform leverages our focused investment in building the world’s most advanced GPU technology.”

Nvidia is at the center of four exciting growth opportunities — PC gaming, VR, deep learning, and self-driving cars. We are especially excited about deep learning, a breakthrough in artificial intelligence algorithms that takes advantage of our GPU’s ability to process data simultaneously, he added

And he said, “Deep learning is a new computing model that teaches computers to find patterns and make predictions, extracting powerful insights from massive quantities of data. We are working with thousands of companies that are applying the power of deep learning in fields ranging from life sciences and financial services to the Internet of Things.”

Huang has dedicated most of the time in Nvidia’s recent press conferences to Nvidia’s attempts to create supercomputers for cars, which could fuel innovations such as dashboard electronics, infotainment systems, and self-driving cars.

Nvidia is engaged with 3,500 companies in the deep learning market, said Colette Kress, chief financial officer, in a conference call with analysts today. It’s a good thing that the emerging markets are taking off, as Nvidia made a big move into mobile chips and then decided to exit that market.

 

Last modified on 18 February 2016
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