Nvidia’s quarterly revenue hits a record high: games, ProViz, encryption
In the second quarter of the 2022 fiscal year ending on August 1, Nvidia announced a record quarterly revenue of $6.507 billion on Wednesday, an increase of 68.3% year-on-year. The company’s sales are driven by unprecedented demand for high-end gaming GPUs, professional graphics cards for ProViz applications, and cryptocurrency mining.
Since NVIDIA launched its GeForce RTX 3000 series “Ampere” GPU in September last year, the company’s revenue has been growing steadily. Although the manufacturer’s suggested retail price is very high, the GPU has quickly gained recognition from gamers. The popularity of Nvidia’s GeForce RTX 3000 series graphics cards, many of which belong to Best graphics card, Although prices have soared due to shortages, they still remain high, which is why Nvidia has sold every graphics processor it can produce in the past 12 months or so.
As Nvidia has increased the production of data centers and professional solutions based on the Ampere architecture in recent quarters, the company’s revenue and profitability have increased significantly because of the high sales premium of such products. In addition, the company’s automotive applications also showed an upward trend in the second quarter.
In addition to setting a record high income of US$6.507 billion, Nvidia also achieved a net income of US$2.374 billion in the second quarter of fiscal year 2022, an increase of 282% from the US$622 million in the second quarter of fiscal year 2021. The company’s gross profit margin also rose to 64.8% from 58.8% in the same period last year.
Games and mining
Nvidia’s bread and butter has always been its graphics business, and in the most recent quarter, it has been booming due to high average selling prices, record demand and Ethereum mining. In the second quarter of fiscal year 2022, sales of NVIDIA gaming hardware (including GeForce GPUs and console SoCs) totaled US$3.061 billion, an increase of 11% month-on-month and 85% year-on-year.
Nvidia claims that more than 80% of the new Ampere GPUs shipped this quarter are LHR (low hash rate) GPUs, which are not particularly suitable for mining, so most (but not all, Nvidia admits) GeForce RTX graphics cards sold Q2 FY2022 finally fell into the hands of gamers.
Nvidia CMP (cryptographic mining processor) product line sales reached 266 million US dollars, a substantial increase Starting from approximately US$150 million The first quarter of fiscal year 2022. At the same time, as the profitability of Ethereum mining declines, Nvidia expects that CMP sales will collapse, and the shipments of game graphics cards will also be moderately affected.
Data center and ProViz
The sales of professional graphics cards and data center solutions are driven by a variety of factors, including new product launches and upgrade cycles. As early as the first quarter, Nvidia launched several new A-series computing GPUs for data centers and RTX-series GPUs for ProViz applications. As these products increased in the second quarter, Nvidia’s data center business achieved revenue of US$2.366 billion, an increase of 35% compared to the same period last year, while the company’s ProViz business sold graphics cards worth US$519 million, a year-on-year increase 156% increase.
For companies like Nvidia, the third quarter is always the most successful, because PC manufacturers are increasing orders as they prepare for back-to-school (BTS) and holidays. For the third quarter of fiscal year 2022 (third quarter of fiscal year 2021), Nvidia expects its revenue to reach 6.8 billion US dollars ± 2%, and its gross profit margin will drop to 65.2%.