Nvidia's RTX 30 series is selling so well, and its financial report has set a new record. Huang: The time for the completion of the Arm acquisition has been determined

Yang Jing from Aofei Temple
Quantum Bit Report | Public Account QbitAI

Leader Huang Renxun seems to be in a good mood recently.

Because the performance is very good. In the early morning of November 19th, Beijing time, Nvidia released its third-quarter financial report for fiscal year 2021.

Third quarter revenue was $4.726 billion, up 57% year-on-year and 22% quarter-on-quarter;

Game revenue was $2.27 billion, up 37% year-on-year ;

Data center revenue reached $1.9 billion, up 162% from the same period last year .

According to their own words, it was "Record", "Record", and "Record", and all three set historical highs.

In addition, net profit in the third quarter was US$1.336 billion, compared with US$899 million in the same period last year, a year-on-year increase of 49%. In the previous quarter, it was US$622 million, an increase of 115%.

Mr. Huang expressed satisfaction with the result.

Nvidia is firing on all cylinders, delivering record revenue in gaming, data center, and overall.

The new RTX 30 graphics cards offer us the biggest generational leap ever and demand is very high.

The financial report shows that the new RTX graphics card will drive Nvidia's revenue to grow by 20% year-on-year .

However, the capital market did not seem to buy it, and the stock price fell nearly 2% in after-hours trading .

In addition, Nvidia also announced the progress of its "US$40 billion acquisition of Arm", which has attracted great attention in the industry.

The transaction is expected to be completed in the first quarter of fiscal year 2022 , when an AI laboratory will be built in Cambridge, UK, to create an artificial intelligence supercomputer based on Nvidia and Arm technology.

Performance of the two major “money-making” businesses

In terms of revenue structure, most of Nvidia's revenue this quarter still came from PC gaming business, accounting for 48% of total revenue .

Although the data center business surpassed gaming for the first time in the last quarter and became the most profitable business, Nvidia's release of the latest RTX30 series gaming graphics cards in September this year has significantly increased revenue.

Why is it so lucrative?

This GPU is based on the latest Ampere architecture, with new RT Core, Tensor Core, DLSS and streaming multiprocessors, which can bring realistic ray tracing effects and advanced AI performance. The performance is twice that of the previous generation based on Turing.

More than 20 games like Fortnite, Cyberpunk 2077, Call of Duty: Black Ops, etc. support NVIDIA RTX real-time ray tracing and DLSS artificial intelligence super resolution.

In addition, NVIDIA Reflex™, a set of technologies that improve game response time by reducing system latency, and NVIDIA Broadcast™, a plug-in that improves microphone, speaker, and webcam quality through RTX-accelerated AI effects…

Many netizens couldn’t help but shout, NVIDIA YES!

Huang also said that Nvidia RTX has made ray tracing a new standard for games .

Of course, there is also an indispensable money-making business - "data center".

Although it was overtaken by the gaming business this quarter, revenue continued to grow, reaching a "record" of US$1.9 billion, a year-on-year increase of 162% and an increase of 8% compared to the previous quarter.

Judging from the progress, the "data center" business has considerable momentum.

It was first recognized by Amazon and Oracle: following Google Cloud Platform and Microsoft Azure, it used cloud computing platforms based on NVIDIA A100™ GPU.

It was also announced that five supercomputers will use Nvidia’s data center accelerators or networks, including one that claims to be the “world’s fastest AI supercomputer” - “Leonardo”.

And, it continued to lead the MLPerf performance benchmark for inference, winning in all tests across all six application areas for data center and edge computing systems.

In other business,

Professional Visualization segment revenue was $236 million, down 27% year-over-year and up 16% quarter-over-quarter;

Automotive segment third quarter revenue was $125 million, up 13% sequentially and down 23% year-over-year.

OEM and intellectual property revenues were $194 million.

Lao Huang: We will continue to improve AI standards

Lao Huang was very satisfied with the result.

Nvidia is firing on all cylinders, delivering record revenue in gaming, data center, and overall.

Regarding the future outlook, in addition to what is said in the financial report:

Next quarter revenue is expected to be $4.8 billion, plus or minus 2%; GAAP gross margin is expected to be 62.8%.

Huang said that Nvidia will continue to improve its AI standards. For example, the A100 computing platform has been deployed by the world's top cloud computing companies.

For example, Arm’s acquisition plan.

The transaction will combine Nvidia's AI computing platform and Arm's vast ecosystem to create a top computing company in the AI ​​era.

The time has also been basically determined, and it is expected to be completed in the first quarter of fiscal year 2022. According to Nvidia's fiscal year calculation method, it will be completed next year, that is, in 2021.

With Arm's technology, Nvidia will build a world-class AI laboratory in Cambridge, UK, which will include an AI supercomputer. It will also collaborate with local institutions and provide research scholarships.

In addition, NVIDIA also plans to build the UK's most powerful AI supercomputer, Cambridge-1, which is based on the NVIDIA DGX SuperPOD™ system and is designed specifically for AI research in the fields of medicine and drug discovery.