Nvidia's data center revenue jumps 43 percent

Chipmaker Nvidia posted strong earnings, with its fourth-quarter sales jumping 41 percent over last year's results to $3.11 billion.

Its data center revenue rose by 43 percent to $968 million. The scale of the increase was somewhat helped by last year's poor performance, when Nvidia suffered a slump as cryptocurrency miner orders cooled.

Big in the cloud

Nvidia CFO Colette Kress said in an earnings call (via SeekingAlpha): "Strong growth was fueled by hyperscale and vertical industry end customers.

"Hyperscale demand was driven by purchases of both our training and inference products, in support of key AI workloads such as natural language understanding, conversational AI and deep recommendations."

Kress noted that "we're still looking at around the same split of 50-50 [customer orders] between our hyperscalers and our vertical industries and maybe a little bit tad below 50 in terms of our total overall hyperscalers."

Gaming revenue rose 56 percent in the quarter to $1.49 billion, partially due to the continued success of the Nintendo Switch. Earlier this month, the company brought its cloud gaming service, GeForce Now, out of beta, allowing users to stream video games without buying the expensive hardware to play the game locally.

The GPU company also noted that it suffered a $100 million reduction to expected sales in the current quarter due to the coronavirus outbreak. Roughly a quarter of the company's sales come from China, while many of its - and its customers' - supply chains rely on China.

source datacenterdynamics

Industry: Data Centre / Data Center / AI / Artificial Intelligence