Nvidia’s robust growth in gaming is being fueled by the following factors: 1) the anticipation of new blockbuster games 2) the rise of eSports 3) the emergence of new technologies like virtual reality and Direct X and 4) the expansion in developing countries.ĮSports is perhaps one of the most important growth drivers for the gaming market. New Game Pipeline, eSports, New Technologies To Drive Gaming Growth From a reporting segment perspective, GPU revenue of $1.11 billion was up 12% year-on-year, whereas Tegra revenue was down 23% as the strength in automotive was offset by weakness in smartphones and tablets. Data center revenue, though up 13% sequentially, declined 8% year-on-year due to lumpiness from large deep learning projects.
Growth in the quarter was driven by 44% and 55% year-on-year increases in revenue for gaming and automotive infotainment systems, respectively. Quick Snapshot Of Q3 Fiscal 2016 EarningsĪt $1.3 billion, Nvidia’s Q3 2016 (fiscal year ends in January) revenue was up 6% year-on-year and 13% quarter-on-quarter. The company’s stock is up almost 10% since the earnings release. Nvidia has secured a well defined and strong position in each of these growth markets, which is why the company has managed to report strong growth so far this year despite the visible slowdown in the PC market. These four segments accounted for 85% of Nvidia’s Q3 revenue, up from 71% a year ago.
The company remains focused on its strategy of creating strong platforms for the gaming, professional visualization, data center, and automotive sectors. This is the second consecutive quarter in which the company has significantly exceeded its original guidance, and the strong performance in both quarters was mainly driven by Nvidia’s increasing strength in PC gaming and the automotive market. Leading GPU manufacturer Nvidia reported a stellar Q3 fiscal 2016, with both revenue and earnings per share beating Wall Street estimates by a wide margin.
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