NVIDIA has announced its Q2 2020 earnings report, with the Data Center revenue beating gaming for the first time in the company’s history. While gaming still accounts for a sizable chunk of Team Green’s earnings at $1,654 million (up 24% Q/Q and 26% YoY), the Data Center market is quickly becoming the focus of the entire microprocessor industry.
The Data Center revenue surpassed the revenue from gaming by nearly $100 million, coming in at $1,752 million (up 54% Q/Q and 167% YoY). The second-quarter revenue also included Mellanox’s revenue which contributed to 14% of the company’s overall revenue. The recently announced Ampere based A100 Tensor core accelerator made significant contributions to this figure, with 50 systems already in the industry.
In the gaming segment, ray-tracing continues to be the focus, with partner titles like Cyberpunk 2077, Minecraft, Death Stranding (DLSS 2.0) and Justice being the core highlights.
Overall, NVIDIA’s revenue grew by 26% Q/Q and a hefty 50% YoY, with a positive Q3 outlook:
- Revenue is expected to be $4.40 billion, plus or minus 2 percent.
- GAAP and non-GAAP gross margins are expected to be 62.5 percent and 65.5 percent, respectively, plus or minus 50 basis points.
- GAAP and non-GAAP operating expenses are expected to be approximately $1.54 billion and $1.09 billion, respectively.
- GAAP and non-GAAP other income and expense are both expected to be an expense of approximately $55 million.
- GAAP and non-GAAP tax rates are both expected to be 8 percent, plus or minus 1 percent, excluding any discrete items. GAAP discrete items include excess tax benefits or deficiencies related to stock-based compensation, which are expected to generate variability on a quarter by quarter basis.
- Capital expenditures are expected to be approximately $225 million to $250 million.