Today NVIDIA announced their fiscal earnings for the third quarter of their 2017 fiscal year (and yes, that’s not a typo). NVIDIA has cracked the $2 billion mark for quarterly revenue, with earnings of $2.004 billion this quarter. This is up an impressive 54% compared to the same quarter last year. This record revenue follows a previous record for Q2, and NVIDIA is forecasting revenue for next quarter of $2.1 billion, plus or minus two percent. With this rate of growth, they will easily surpass their best yearly earnings ever which was $5.01 billion announced in January 2016. They are on pace for close to $7 billion for the year, which is a dramatic increase at a time when the core PC market is in decline. Gross margin for this quarter was up 2.7% year-over-year to 59.0%, and operating income was up 161% to $639 million. Net income for the quarter was $542 million, up 120% over last year, and earnings per share came in at $0.83, up 89% year-over-year.

NVIDIA Q3 2017 Financial Results (GAAP)
  Q3'2017 Q2'2017 Q3'2016 Q/Q Y/Y
Revenue (in millions USD) $2004 $1428 $1305 +40.3% +53.6%
Gross Margin 59.0% 57.9% 56.3% +1.1% +2.7%
Operating Income (in millions USD) $639 $317 $245 +102% +161%
Net Income $542 $261 $246 +108% +120%
EPS $0.83 $0.41 $0.44 +102% +89%

NVIDIA has done a decent job diversifying itself, but it’s core market is still consumer GPU sales. With the launch of Pascal, NVIDIA has maintained a very healthy performance lead, and that has certainly translated into sales. Gaming related sales for this quarter came in at a staggering $1.244 billion, up 63.5% compared to Q3 2016. NVIDIA gained more revenue in the gaming segment this quarter than all of AMD’s Computing and Graphics segment earned in their last quarter. Clearly there was some pent-up demand for the FinFET based GPUs after being on 28 nm for so long. Professional Visualization had a good quarter as well, with revenues of $207 million. That is a 9% increase year-over-year, although they did have a 3% drop in revenue compared to their previous quarter.

With the rise in GPU compute in the datacenter, NVIDIA has aggressively pursued this market, and it is starting to make some real inroads here as well. For Q3 2017, NVIDIA had revenue of $240 million in their Datacenter group, which is up from $82 million a year ago, or a 193% increase in revenue year-over-year. Datacenter revenue is now the second largest segment for NVIDIA, and only a year ago it was half of the professional GPU revenue.

Automotive continues to be a solid performer for NVIDIA too, and they’ve released quite a few SoCs specifically for this market. NVIDIA announced that it has an agreement to supply Tesla Motors the DRIVE PX 2 platform to power a new AutoPilot system in the Model S, X, and upcoming 3. With a maximum TDP of 250 Watts, DRIVE PX 2 casts off the mobile SoC constraints of the previous design, despite still having NVIDIA’s Denver CPU paired with Cortex-A57. With the continued investment in this sector, NVIDIA has seen strong growth here, and revenue for this quarter was $127 million, which is up from $79 million a year ago, or a gain of 60%.

Finally, OEM and IP had earnings of $186 million for the quarter, which is down slightly from the $193 million they earned a year ago, but with the recent announcement that they will power the Nintendo Switch, perhaps they will see some growth here in the future.

NVIDIA Quarterly Revenue Comparison (GAAP)
In millions Q3'2017 Q2'2017 Q3'2016 Q/Q Y/Y
Gaming $1244 $781 $761 +59.3% +63.5%
Professional Visualization $207 $214 $190 -3.3% +8.9%
Datacenter $240 $151 $82 +58.9% +192.7%
Automotive $127 $119 $79 +6.7% +60.8%
OEM & IP $186 $163 $193 +14.1% -3.6%

This entire year has been very good for NVIDIA, but this quarter in particular has seen some very strong growth. The best news for NVIDIA and their investors is that they are not just seeing growth in their diversified markets, although they are doing very well there, but the growth in their core market was incredibly strong as well.

Source: NVIDIA Investor Relations

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  • webdoctors - Thursday, November 10, 2016 - link

    NVIDIA gained more revenue in the gaming segment this quarter than all of AMD’s Computing and Graphics segment earned in their last quarter.

    Damn, the numbers don't lie. The echo chamber of online bloggers make it sound like NV products are expensively evil and AMD stuff is competitive this quarter, but the silent majority have spoken at the checkout stand and its clear NVDA is in a league of their own compared to Intel and AMD. Definitely a company that's executing amazingly.
  • StrangerGuy - Thursday, November 10, 2016 - link

    All Polaris did was to make 1070/1060 look like a steal with PCIEgate, overpriced AIB 480s, lousy DX11 performance, and mediocre perf/W. Also contrary to AMD fanboys want you to believe, there are plenty of non-bankrupt people who can spend $100+ on a better NV card, and that money is nothing to them for the card's 2-3 year lifespan.
  • xype - Friday, November 11, 2016 - link

    > money is nothing to them for the card's 2-3 year lifespan.

    I think this pretty much nails it. If I needed a decent GPU _right now_ and would only use it for 6 months, AMD would be a no-brainer.

    But buying for 2-4 years—and most people these days do, so it doesn’t apply to the affluent ones only—means that $100 for 2-4 years are an investment of $2-4 a month.

    In 2 years time, I know _I_ would want the better performance. Even if GPUs make a huge leap in that time (and they won’t), buying cheap now only to have to buy again in 2 years gets as expensive as buying a mid-to-high range GPU now. Only the latter option having the added benefit of me getting better performance in the present.
  • beginner99 - Friday, November 11, 2016 - link

    AMD owns performance per watt but yes the 390(x) and RX 480 were a step back. Still AMD has lower resale value and hence going via ebay can save you 50% or more
    compared to nvidia for same performance. You would be dumb to not do that.
  • Morawka - Tuesday, November 15, 2016 - link

    Nvidia owns performance per watt.

    AMD owns performance per dollar.. at least they used to
  • Shadow7037932 - Saturday, November 12, 2016 - link

    PCIEgate? What's that?
  • Space Jam - Saturday, November 12, 2016 - link


    All talk, not an actual problem for the majority of people.

    >overpriced AIB 480s

    They have been pricey, but so too have been the

    >lousy DX11 performance

    AMD DX11 performance is better than ever. Yeah, it isn't Nvidia tier, but it's by no means bad.

    >mediocre perf/W

    AMD is lagging behind there, but it's HARDLY mediocre. Polaris matches Maxwell in power efficiency and Maxwell isn't anything bad just yet.
  • renz496 - Saturday, November 12, 2016 - link

    AFAIK the talk about Polaris matching Maxwell efficiency is a subjective one. Polaris gain their efficiency from node shrink. not so much from architecture changes. if maxwell was directly shrink to 14nm/16nm finfet they will be even more power efficient than polaris at 14nm.
  • JoeyJoJo123 - Monday, November 14, 2016 - link

    >if maxwell was directly shrink
    But Maxwell's not getting a die shrink... Maxwell's efficiency is set in stone as Nvidia's moved onto Pascal now. And currently AMD's Polaris efficiency is very close to what Maxwell's at.

    Yeah it's too bad that AMD's performance/watt is roughly equivalent to Nvidia's last gen, but the GTX 970 didn't suddenly become a shitty card overnight. It's still a good card with good performance/watt capable of modern games at 1080p and 1440p, or even 4k at reduced fidelity. Likewise, the RX480 is similar and accomplishes the same thing.

    I find it odd that Team Red's equivalent of a GTX 970 is crapped on so hard by enthusiasts like this.
  • JoeyJoJo123 - Monday, November 14, 2016 - link

    It's as if people on Team Green suddenly forget and forgive that Nvidia sold them a 3.5GB VRAM GTX 970.

    And then Nvidia buyers suddenly point the finger at AMD of a scandal that was literally fixed in less than 10 days via a driver update to modify the power usage of the video card, while Nvidia GTX 970 owners didn't get the speed of the last .5GB of their VRAM "restored" with a driver update and are still waiting on collecting a class action lawsuit settlement.

    There's a lot of unnecessary negative stigma against AMD for no reason online, and it shows with the attitudes people pervade online. The RX 480 is the rough equivalent of a GTX 970 and both cards, new, have roughly the same price on the market today, and the GTX 970 sold like hotcakes despite the VRAM problems.

    The only thing I find disappointing with AMD's Radeon video cards right now is that they still haven't released their high end lineup of video cards, which despite being the minority of actual GPU sales, still serves the purpose of having a halo product that people can aspire to want.

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