The game business continued to decline, but the autopilot business has double-digit growth for two consecutive quarters and is expected to become a new growth engine.
After two disappointing quarters, NVIDIA’s latest quarter performance exceeded market expectations.
After the US stock market on Thursday, Nvidia released its Q2 results for fiscal year 2020, with revenue of $2.58 billion, down 17% year-on-year, and earnings per share of $1.24, down 49% year-on-year. Both exceeded expectations and the share price rose after the market. %the above. Net profit for the quarter was $552 million, a year-on-year increase of 40%. The guidance for the next quarter is $2.9 billion in revenue and 2% up and down.
During the reporting period, its game business continued to decline, with revenue of $1.313 billion, down 27% year-on-year and accounting for 51% of the company’s total revenue. The data center fell for the second consecutive quarter, with revenue of $655 million, down 14% year-on-year, up from a 10% decline in the previous quarter.
In other businesses, autopilots rose 30% and received $209 million in revenue, making it the best performer of the quarter. In the last quarter, autonomous driving was also the fastest-growing business. Professional visualization revenue was $291 million, up 4% year-on-year;OEM businessRevenue was $111 million, down 4% year-on-year.
Starting from Q3 in FY 2019, Nvidia has already bid farewell to explosive high-speed growth. Due to the macro downturn, inventory pressure and other reasons, the current two major business games and data center revenues of NVIDIA are in a downward trend. In addition, AMD has also brought more competitive pressure to NVIDIA.
NVIDIA earnings screenshots, major business revenues
In the first two quarters of fiscal year 2020, only autonomous driving and professional visualization continued to grow. With the gradual landing of autonomous vehicles, the autonomous driving business may become the new growth engine for NVIDIA, with double-digit growth in autopilot revenues in the last two quarters. Professional visualization has also grown steadily. Ning Weida founder and CEO Huang Renxun said: “Real-time ray tracing is the most important graphic innovation in a decade, and its adoption rate has reached a turning point.”
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NVIDIA earnings screenshots, major market revenues
Among NVIDIA’s five major markets, the rest of the Asia Pacific region (markets outside China) and the European market performed well. The rest of the Asia-Pacific region grew by 12% year-on-year, earning $756 million, surpassing the Taiwan region as the largest contributor. The Taiwan area has long been the primary source of revenue. Europe grew 23% year-on-year, earning $288 million, continuing the gains of the previous quarter.
The Taiwan, China, and US markets all experienced a decline of more than 20%, with the US market dropping by as much as 50%. NVIDIA’s revenues in major markets are becoming more balanced, and its reliance on the Chinese market is gradually decreasing.