While the PC market has been continuously weak, NVIDIA, the company that focuses on the production of graphics chips, has outperformed all estimates and reported very strong results for the fourth quarter.
The company showed revenue of $1.4 billion, which represents a 12 percent increase year on year and is close to $90 million higher than the average estimated by analysts. Sales of GPU’s went up by 10 percent to $1.18 billion year on year, with the GeForce GPU seeing an increase in revenue of 21 percent. Quadro professional GPUs also showed an increase in sales of 7 percent compared to the same period for the previous year, coming in at $203 million while at the same time revenue for the data center, which includes the GRID virtualization platform and Tesla cards, climbed by 10 percent to $97 million. Revenue reported for Tegra also increased by 40 percent to $157 million, while the company’s automotive revenue went up by 68 percent, coming in at $93 million.
The company saw increases across the board, with non-GAAP earnings per share increasing to $0.52 from $0.43 for the same period the previous year, and ending $0.20 above consensus predictions by analysts. As far as GAAP is concerned, the $0.35 per share earnings remained the same year on year, but that was mainly due to the $0.04 charge for the Icera modem business applied to the number. For the first quarter of the current year, NVDIA is expecting revenue of $1.26 billion, plus or minus 2 percent, which is higher than the $1.23 billion estimated by analysts.
Boost from Gaming
Thanks to the gaming GPU market behaving independently from the rest of the PC market, gaming revenue for the company went up to $810 million for the fourth quarter, showing a 25 percent increase on year on year. This was mostly driven by the ever growing demand for NVIDIA’s high-end graphics cards. The last few month have seen NVIDIA dominate the market in graphics cards, with its market share reaching 80 percent, leaving its biggest competitor AMD in the dust.