On Wednesday Nvidia announced it’s making more money than it ever has before, pulling in a record-breaking $7.1 billion in the 3rd quarter ending October 31, 2021. According to the summary posted by Nvidia, this represents a whopping 50 percent increase compared to the same quarter last year. In fact, the best way to summarize the results of the quarter is to simply say, everything is up, everywhere, across the entire company. Everything Nvidia has for sale is selling like hotcakes, and will probably continue to do so for the foreseeable future (we are not financial advisors).
Overall revenue, as stated previously, is a new record. Broken down a bit, its Data Center revenue of $2.94 billion is also a new record, and is up 55 percent from last year’s quarter. Its gaming revenue is also a new record at $3.22 billion, which is up a crazy 42 percent from a year earlier. Founder and CEO of Nvidia, Jensen Huang, explained the boom thusly, “Demand for NVIDIA AI is surging, driven by hyperscale and cloud scale-out, and broadening adoption by more than 25,000 companies. NVIDIA RTX has reinvented computer graphics with ray tracing and AI, and is the ideal upgrade for the large, growing market of gamers and creators, as well as designers and professionals building home workstations.”
As anyone who has tried to buy a video card in the past year knows, demand is indeed surging, but apparently that’s true for all of the company’s products, including Gaming, Data Center and Professional Visualization market platforms, according to the summary. As if it even needs to be stated, the company also beat its quarterly expectations for sales, and also saw its market cap hit $800 billion, causing CNBC’s Jim Cramer to declare Nvidia as the next trillion-dollar company, which does not seem like a far-fetched conclusion.
One very interesting tidbit in the earnings summary is that according to CFO Kolette Cress, “Nearly all our desktop Ampere architecture GeForce GPU shipments are Lite Hash Rate in our effort to direct GeForce to gamers.” If you thought it was making all this money due to crypto miners, that does not appear to be the case. According to a summary on Tom’s Hardware, a year ago Nvidia sold $266 million worth of its specialized Cryptocurrency Mining Processor (CMP) GPUs in Q3, then $150 million in Q1 FY2022, followed by just $105 million in Q3. Nvidia’s CFO notes, “We do not have visibility into how much this (sales of mining cards) impacts our overall GPU demand. Volatility in the cryptocurrency market, including changes in the prices of cryptocurrencies, can impact demand for our products and our ability to estimate demand for our products.”
Going forward, the gravy train is showing no signs of slowing down, not in the next quarter, or perhaps even far into next year. Nvidia estimates it Q4 revenue will be an even higher $7.40 billion, plus or minus two percent, and it notes in the earnings summary it has already placed several long-term supply agreements to make sure it has enough parts in the future. These agreements required it to make one payment of $1.64 billion to its suppliers, with another $1.79 billion due in the near future.
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