The story in gaming begins a year ago, in Q4 2018 (NVIDIA's Q4 FY2019) when the division saw its revenue absolutely plummet quarter-over-quarter by 45%. The segment could also be named its "Geforce" division as that name is perhaps the most recognizable brand in all of computer gaming, much to AMD's ( NASDAQ:AMD) chagrin.ĭespite $700 million from the data center and another $600 million in quarterly revenue from auto and visualization products, gaming still accounts for 55% of the company's total sales as of its most recent earnings release. Both Intel ( NASDAQ:INTC) and AMD posted very healthy Q4 numbers, which suggests the PC market as-a-whole outpaced growth estimates and naturally NVIDIA would be expected to follow suit given it boasts ~80% GPU market share.Īnd gaming is certainly where NVIDIA's core still remains despite all of its ventures in self-driving systems, AI and enterprise chips, and professional visualization cards. The world's leader in cutting edge graphics and parallel processors is hoping to show a few important things to its investors, chief of which is the state of its core gaming business. In a moment I'll dive into some of the trends seen in each but the overall message is fairly simple: gaming rules the roost at this chipmaker and it's important that it shows some growth in its other divisions, especially data center which contains the nebulous "AI" field. NVIDIA breaks out its major segments as such: Gaming, Professional Visualization, Data Center, Auto, and finally OEM & Other. Analysts are looking for somewhere around $2.84 billion in guidance for Q1-2020.Expect to hear an update on the $7 billion dollar Mellanox acquisition. Will the data center segment finally break out of its holding pattern?.Wall Street consensus is looking for earnings of $1.66 cents per share and $2.96 billion in revenue.Sales have fallen in the last four quarters and despite that $NVDA is up 60% in the last 6 months. NVIDIA ( NASDAQ:NVDA) stock has soared in the last few days as all eyes turn to the company ahead of its earnings release tomorrow. The author has no position in any of the stocks mentioned.
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