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Over the past year, NVIDIA increased gaming revenue by 41%, server — by 124%
25.02.2021 [07:28],
Alexey Razin

This week, NVIDIA reported on the results of the fiscal quarter ended January 31, as well as the entire 2021 fiscal year, which has already passed in the company’s calendar. Both revenue for the fourth quarter and annual revenue turned out to be a record — in the latter case, the increase was 53%. The growth leader, by the way, was not the gaming segment, but the server segment.

Image source: NVIDIA

Of course, the phenomenon of more than twofold growth in revenue in the server direction can be explained by the takeover of Mellanox, which took place last year, but it is also impossible to deny the beneficial effect of the pandemic on the server business of NVIDIA in its initial state. If we talk specifically about the results of the fourth quarter, then the company’s total revenue consistently grew by 6% to $ 5 billion, and in annual comparison it increased by 61%.

As such, graphics solutions accounted for 60% of NVIDIA’s total revenue in the fourth quarter, the sequential revenue growth in this area was 10%, in annual comparison — 47%. Computing and networking solutions increased NVIDIA’s revenue by 91% YoY, sequential comparison is not provided due to changes in revenue accounting methodology.

Image source: NVIDIA

Half of revenue in the fourth quarter of NVIDIA received from the implementation of gaming solutions. In the desktop and mobile segment, revenue was growing, but the seasonal decline in demand for game consoles had a negative impact on the sequential change in gaming revenue. The segment as a whole allowed the company to consistently increase revenue by 10%, in annual comparison — by 67%, to $ 2.495 billion, which is a record value.

Professional visualization solutions increased NVIDIA revenue by 30% to $ 307 million in sequential comparison, declining 7% year-on-year. In the data center segment, the company’s revenue increased by 97% year-on-year. The observed sequential increase in revenue of 16% in the automotive segment, to $ 145 million, could not compensate for the decline in annual terms by 11%. In the case of NVIDIA, the situation is aggravated by the fact that the demand for components for multimedia car systems is gradually decreasing, and active driver assistance systems are not yet able to compensate for this in monetary terms.

The “OEM and Other” segment, through which specialized solutions for miners passed in the past, is still reporting exclusively on graphics solutions for ready-made PCs and laptops. Revenue declined consistently by 21%, but increased by 1% YoY. NVIDIA representatives explained that demand for entry-level graphics solutions for notebooks is to blame for the consecutive decline in revenue. For the full year, revenue in this area, however, grew by 25%, and the increase in demand for entry-level graphics for notebooks this time should be thanked.

Considering the dynamics of revenue for the 2021 fiscal year as a whole, we can note its increase by 53% to $ 16.675 billion, which is also a record value for NVIDIA. Graphics solutions for the year increased revenue by 29% to $ 9.834 billion, the remaining $ 6.841 billion was received in the direction of computing and network solutions, here the annual revenue growth was 109%.

Image source: NVIDIA

In annual terms, the gaming segment added 41% to $ 7.759 billion. It turns out that the share of gaming solutions in annual revenue did not exceed 46.5%, but the data center direction that grew by 124% brought in $ 6.696 billion in revenue, or 40% of the total amount. Professional graphic solutions in annual terms showed negative dynamics of revenue (minus 13%), as well as the automotive direction (minus 23%).

The CFO of the company Colette Kress at the reporting event estimated the contribution of miners to NVIDIA’s revenue for the fourth quarter at $ 100-300 million. Recently presented specialized accelerators of the CMP family for cryptocurrency mining in the current quarter can bring the company about $ 50 million. NVIDIA founder Jen-Hsun Huang added that the release of such solutions is unlikely to ever become a source of serious income for the company. Colette Kress explained that the GPU shortage is unlikely to be overcome until the end of the first fiscal quarter, which ends in late April.

In the coming fiscal quarter, NVIDIA expects to gain about $ 5.3 billion. This value turned out to be higher than market expectations, the company’s stock price after the close of trading rose by 2.53%.

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