NVIDIA Posts a Solid Q1 as Data Center Revenue Grows by 80% YoY to $1 Billion+, Gaming by 27%

The first quarter of 2020 has been shaky for most businesses with the COVID-19 pandemic grinding most to a halt. However, amid these trying times certain semiconductor firms are having their best fiscal quarter yet. That’s right, we’re talking about chipmakers, Intel, AMD and NVIDIA. The latter disclosed its Q1 earnings yesterday and they’re quite impressive. Although gaming still contributes to the majority of profits, NVIDIA’s Data Center business has started to become the crown of Jensen’s green empire. In Q1 2020, it grew by a massive 80% YoY, crossing the $1 billion mark for the first time:

That’s a growth of nearly 2x compared to the first quarter of 2019, and 18% compared to the last. NVIDIA’s gaming sector grew by a modest 27% compared to Q1 2019 and fell 10% compared to the last quarter of 2020. This is not surprising considering the impact of the pandemic on the eco-system.

Moving on, the professional graphics card market grew by a slim 15% YoY, albeit the q/q revenue was down by 7%.

Lastly, automotive had a rather dismal time with a drop of 7% YoY and 5% q/q.

Overall, NVIDIA posted a very positive earnings report for Q1 2020 with a YoY growth of 39% with profits falling by just 1% compared to last fiscal, despite turbulent conditions. Like its peers, Q2 is going to be trying, with the revenue for automotive expected to drop by 40% q/q and a net loss of $50 million GAAP and $45 million non-GAAP.

Regardless, the overall revenue is expected to grow by around $0.65 billion or 18% q/q and a healthy 40% YoY. Mellanox’s revenue will also start contributing towards the total earnings which at the moment is around $1.5 billion, and gorwing at 27% YoY.

Areej Syed

Processors, PC gaming, and the past. I have been writing about computer hardware for over seven years with more than 5000 published articles. Started off during engineering college and haven't stopped since. Mass Effect, Dragon Age, Divinity, Torment, Baldur's Gate and so much more... Contact: areejs12@hardwaretimes.com.
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