Published in Graphics

Nvidia does better than expected

by on13 May 2016


Chip demand rising as AMD snoozes

Nvidia forecast better-than-expected revenue for the current quarter demand for its chips has risen, while its rival, AMD has a knap while waiting for its Zen technology to arrive.

Shares of the company, which also reported profit and revenue above analysts' estimates, were up 7.5 percent in extended trading.

The chipmaker last week unveiled its GeForce GTX 1080 and 1070 graphics processors based on its Pascal technology.

Chief Executive Jen-Hsun Huang said the new Pascal GPU architecture will give a giant boost to deep learning, gaming and VR. The  processors were in full production and would be available later this month.

Revenue from its gaming business, which designs graphics cards such as GeForce for PCs, rose 17 percent to $687 million.

The company has weathered a shrinking personal computer industry by focusing on game enthusiasts, who are willing to pay hundreds of dollars for processors used in playing graphically demanding games. Revenue from its data center business, which includes its Tesla processors, rose 62.5 percent to $143 million.

The company said it expected second-quarter revenue to be $1.35 billion. Analysts were expecting $1.28 billion for the quarter. Nvidia's net income rose to $196 million in the first quarter ended May 1 from $134 million a year earlier. Revenue rose 13.4 percent to $1.31 billion, while analysts were expecting $1.26 billion.

The company also said it intends to return about $1 billion to shareholders in fiscal 2017 through quarterly dividends and share buybacks.

Last modified on 13 May 2016
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