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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  • Guspaz - Monday, November 14, 2016 - link

    The 970 sold like hotcakes because it was a good card for a good price, and the 3.5GB issue didn't actually have any impact on real-world use. Case in point: the R480 has 8GB of RAM and still provides roughly similar performance. Which is actually a problem, because the R480 is currently priced about the same as the much faster 1060.
  • JoeyJoJo123 - Monday, November 14, 2016 - link

    >Case in point: the R480 has 8GB of RAM and still provides roughly similar performance.
    I don't think you really understand the way RAM works; You either have enough RAM to perform all processes, or you don't have enough and suddenly there is massive performance degradation as now the process is cache missing, and has to look into swap to find the data off a much slower SSD, or in a worst case scenario, a HDD.

    3.5GB was and still is enough for most titles in 1080 and 1440p today. Few titles exceed this amount of VRAM, but when they do, (ex: massive Skyrim texture mods), VRAM usage goes way up and game performance degrades a lot.

    So to say "the R480 has 8GB of RAM and still provides roughly similar performance" means to imply that it should be providing *better* performance because it haz moar vramz, which is *only* true if the same application being compared on a GTX 970 to RX480 was occupying anything more than 3.5GB in VRAM.

    Consider the speed of a desktop if a user has 32GB of RAM installed. It never slows down due to lack of RAM when using standard desktop applications. What if they installed another 32GB of RAM for a total of 64GB of RAM? Well it still wouldn't speed up any standard desktop applications, as they weren't able to saturate the first 32GB of RAM to begin with.
  • medi03 - Tuesday, November 15, 2016 - link

    960 sold like hotcakes too, despite having pathetic perf/$.
    Hell, Prescott outsold Athlon 64 like 3 vs 1?

    Why pretend average consumer choices are reasonable?
  • medi03 - Tuesday, November 15, 2016 - link

    Oh, give me a break with this BS.
    480 and 470 are solid low range GPUs, 470 has no competition.
  • Ariknowsbest - Friday, November 11, 2016 - link

    Local markets also have an impact, if Nvidia have price parity with AMD people will most likely buy Nvidia. I just looked through the most sold cards in Finland and Sweden and high end 1060 and 1070 dominate the top followed by 1080 and 1050TI and then 480 nitro+.

    Mining is probably were most AMD cards end up.
  • Byte - Friday, November 11, 2016 - link

    exactly, all my radeons are just mining. And don't forget nvidia has some amazing mobile cards in almost a decade. They can finally perform near desktop. Not silly rebadging for the last freakin 5 years. AMD has basically no presence in the mobile GPU sector. Polaris 11 was suppose to be the return everyone (well actually no one) was waiting for, but its still a no show, probably because Polaris uses just too much power and Pascal is decimating. Zen is going to look like a joke, it MIGHT just beat a Nehalim. Which is sad as i just went to my parents to take a look a my old i7 920 that wasn't booting. Man that thing is old and slow. We were waiting for how long on that!?!
  • nikon133 - Sunday, November 13, 2016 - link

    They don't have presence in mobile GPUs, true... but then, Nvidia does not have presence in consoles. I am surprised that consoles exclusivity for AMD is not making more positive impact on AMD side. Maybe those APUs are really dozen a dime, though PS4Pro and Scorpio APUs shouldn't be that cheap... and then, they have sold in vicinity of 70 million APUs in PS4 and X1 so far. Even if they are cheap, quantity should make up a bit for low price.
  • ZeDestructor - Monday, November 14, 2016 - link

    Rumour has it nV, Intel and IBM all walked away from the console market because margins were too small. By the looks of it, AMD isn't really raking it in from there either.
  • Shadow7037932 - Saturday, November 12, 2016 - link

    Mining is no longer profitable on a GPU. ASICs dominate mining these days.
  • medi03 - Tuesday, November 15, 2016 - link

    Except 1050Ti is hardly a good buy, 470 trumps if while being only slightly more expensive.

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