Nvidia hit record high in 3Q sales

Nvidia announced the third quarter settlement on November 18 (local time). According to this, sales growth in the data center and game divisions increased significantly, resulting in total sales of $4.726 billion, an increase of 57% year-on-year, and net profit of $1,398 million, up 49% year-on-year.

The data center division and the game division are two driving NVIDIA earnings. Game division sales reached $2.27 billion, an increase of 37% compared to the previous quarter and 37% compared to the same period last year, the highest in the past. It is stated that the release of the GeForce RTX 30 series, which realized the world’s first 8K, 60 frames, and the popular game Fortnite implemented ray tracing and NVIDIA DLSS, greatly contributed to this strong performance.

The data center division also recorded the highest profit in the past at $1.9 billion, up 8% QoQ and 162% YoY. NVIDIA signed a new large-scale partnership with VMware, and its GPU, NVIDIA A100, was adopted in major cloud businesses such as AWS, Oracle Cloud Infrastructure, Google Cloud Platform, and Microsoft Azure. It also revealed that the announcement of Maxine, an image processing platform for video conferencing, contributed greatly. The company is planning to expand the data center division, and on November 17, 2020, it is announcing the NVIDIA A100 80GB, a GPU for data centers, and the NVIDIA DGX Station A100, an AI workstation for research and development.

On the other hand, unlike the advancement in the game and data center sectors, the professional video editing sector recorded $263 million, down 27% from the same period last year, and the automotive sector, recorded $125 million, down 23% from the same period last year. The sluggishness in these divisions is believed to have been affected by the Corona 19 epidemic, but since all of them are small in size, the damage to total sales was minor.

Nvidia’s total sales in the fourth quarter of 2020 are expected to range from $4.8 billion to a plus or minus 2%. In addition, the big incident that happened to NVIDIA in the third quarter of 2020 is the acquisition of ARM, but since the transaction is completed in the first quarter of 2022, there is no direct impact on this settlement. Related information can be found here .