This afternoon NVIDIA introduced their outcomes for the second quarter of their 2021 fiscal yr, closing out on an distinctive quarter for the corporate that set quite a few income information. With over $3.Eight billion in income, Q2’FY21 was not solely NVIDIA’s largest quarter but, nevertheless for the primary time NVIDIA’s datacenter income has surpassed their gaming income, the normal cornerstone of the corporate. Thanks to the Mellanox acquisition in addition to ongoing A100 accelerator gross sales, the datacenter market has, in the end, grow to be NVIDIA’s single largest income section.
| NVIDIA Q2 FY2021 Financial Results (GAAP) | |||||
| Q2’FY2021 | Q2’FY2020 | Q1’FY2021 | Q/Q | Y/Y | |
| Revenue | $3866M | $2579M | $3080M | +26% | +50% |
| Gross Margin | 58.8% | 59.8% | 65.1% | -6.3% | -1.0% |
| Operating Income | $651M | $571M | $1028M | -33% | +14% |
| Net Income | $622M | $552M | $917M | -32% | +13% |
| EPS | $0.99 | $0.90 | $1.47 | -33% | +10% |
For Q2’FY21, NVIDIA booked $3.87B in income. Compared to the year-ago quarter, it is a soar in income of 50%, making it not solely NVIDIA’s greatest Q2 but, however their largest quarter total. And whereas NVIDIA’s relative profitability took successful as a result of GAAP accounting guidelines, the corporate nonetheless booked $622M in web revenue for the quarter, 13% greater than in Q1’FY20.
Impacting NVIDIA’s outcomes each positively and negatively was the Mellanox acquisition, which closed initially of Q2. Mellanox added one other 14% to NVIDIA’s income – all within the datacenter section – serving to to gasoline NVIDIA’s new highs. At the identical, nevertheless, closing the acquisition got here with further one-time costs for NVIDIA, reducing into NVIDIA’s revenue margins. As a consequence, NVIDIA’s gross margin for the quarter was 58.8%, down 1 share level from final yr, and a number of other share factors from final quarter.
| NVIDIA Quarterly Revenue Comparison (GAAP) ($ in tens of millions) |
|||||
| In tens of millions | Q2’FY2021 | Q2’FY2020 | Q1’FY2021 | Q/Q | Y/Y |
| Gaming | $1654 | $1313 | $1339 | +24% | +26% |
| Professional Visualization | $203 | $291 | $307 | -34% | -30% |
| Datacenter | $1752 | $655 | $1141 | +54% | +167% |
| Automotive | $111 | $209 | $155 | -28% | -47% |
| OEM & IP | $146 | $111 | $138 | +6% | +32% |
Breaking down NVIDIA’s income by platform, the massive information right here is NVIDIA’s datacenter income, which at $1.752B, has for the primary time has surpassed NVIDIA’s gaming income. A big contributor to this shift was Mellanox’s networking merchandise, which contributed over 30% to NVIDIA’s datacenter revenues. But even with out Mellanox’s gear, NVIDIA’s comparable GPU-centric datacenter income could be over $1.2B, surpassing even final quarter’s numbers.
Among a number of firsts, Q2 can be the primary full quarter for A100 income for NVIDIA. Even 1 / 4 later, A100 manufacturing remains to be ramping – and is nowhere close to nearly all of NVIDIA’s datacenter GPU gross sales – however the excessive efficiency (and extremely worthwhile) accelerator helps to additional develop NVIDIA’s already sizable datacenter GPU revenues.
Overall, datacenter income overtaking gaming income has been a very long time coming for NVIDIA, and an necessary step within the firm’s long-term aim of diversifying past graphics. While it’s arguably taken longer than CEO Jensen Huang would maybe have preferred to see, there’s not a query of whether or not NVIDIA has “made it” as a compute firm somewhat than a gaming graphics firm – and it is a massive consider NVIDIA’s market cap lately surpassing Intel’s.
Meanwhile NVIDIA’s gaming income, even after being bumped from the lead spot by way of income,…
