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Nvidia makes money. For the first time this quarter, it generated sales of over four billion dollars, and next time it will go over five. Next year, it may become the largest fabless chip manufacturer in the world.
Last month we had a season of financial results for Intel and AMD. Nvidia has a slightly shifted calendar, its third quarter ran from August to October, so it is reporting the results only now. And these are very strong results, the company now has sales well five times higher than where it was needed in 2012.
After the previous second quarter (when had sales of $ 3.866 billion), Nvidia said in a forecast that it expects sales of around 4.4 billion for the just-ended third quarter. However, we expected the result to be higher in the end – and we were not wrong. Now, Nvidia has announced that Q3 FY2021 sales have reached $ 4.726 billion. This is 22% more than in Q2 and 57% higher sales than a year ago (The difference is that sales are now included purchased Mellanox divisionwhich did not count last year; but it did only a small part of the increase).
Of this, Nvidia had a net profit of $ 1.336 billion. This is due to a high gross margin of 62.6% and a very low 0.9% tax helped the profit (due to the fact that in the US corporations can write off payments to employees in shares, which Nvidia had enough uses and this time a lot of these bonuses probably came together). Earnings per share are $ 2.12.
And now to where these amounts come from, which may be of interest to you because of the current situation where there are seemingly very few new GeForce RTX 3000 graphics on sale. Nvidia states that it had sales of 2.787 billion in the graphics division, ie 25% higher than a year ago and a third higher than in the previous quarter. The Compute & Networking division had revenue of $ 1.939 billion, an increase of 146%, partly due to the former Mellanox; quarter-on-quarter, the increase is only 9%.
GeForce graphics revenue up 37%
The highest increase is in gaming products: Gaming, under which GeForce graphics are below, rose 37% in the third quarter (the same increase year-over-year), with sales of $ 2.271 billion. As a result, GeForce RTX 3000 graphics are likely to sell well, unless such a high improvement is just in old-generation Turing / RTX 2000 sales. RTX 3000 “.
Revenues in data centers were 1.9 billion (+ 8% quarter-on-quarter, + 162% year-on-year thanks to Mellanox). Quadro professional graphics had sales of 236 million (a year-on-year decrease of 27%), automotive products 125 million (a year-on-year decrease of 23%). The OEM and others division generated sales of 194 million, an increase of 36% year-on-year.
Year-round sales could reach almost 17 billion
As usual, the forecast for the next quarter was presented, which is a kind of preliminary view of the next deadline. And this outlook shows even greater revenue growth. Nvidia expects $ 4.80 billion for Q4 with a tolerance of +/- 2%. As you may have noticed, this company sets the outlook so that it is always significantly ahead of it – now it was 7.4%.
If we applied the same to the Q4 forecast, then Nvidia could raise $ 5.15 billion in the last quarter of the fiscal year (calendar November 2020 – January 2021). So it would have swung considerably over the Round Five, a single quarter after breaking the $ 4 billion per quarter barrier.
Nvidia silicon trio behind Intel and TSMC?
That would give $ 16.82 billion in revenue for the full year. Nvidia is likely to move a little higher on the list of largest semiconductor companies. How “big” are the individual semiconductor players, we discussed in this article, and if you look, sales of about 16.4 billion in 2019 were enough for 6th and 7th place in the world. These positions belonged to Broadcom and Qualcomm. This year, Nvidia may not overtake them, but at the rate of growth, it should probably reach this in 2021 and occupy the position of the sixth largest chip manufacturer.
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Top 15 Semiconductor Companies in 2019 by IC Insights Zdroj: IC Insights
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Gallery: Ranking and sizes of the largest semiconductor companies
However, if you look at the rankings, Samsung is in second place, SK Hynix in fourth and Micron in fifth. Their sales are mostly or even made up of a large volume of memory production. If we were to say that memory as a commodity is a very different business and counted only logic chip manufacturers, whether with or without factories, it would be before Intel and only TSMC and then TSMC, where Nvidia produces most of the production (although part now moves to Samsung). TSMC does not have its own chips, instead it manufactures as a supplier for all other so-called “fabless” companies, ie those without its own factories.
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Ranking of fabless chip manufacturers by sales in Q1 2020 according to TrendForce Source: TrendForce
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And if only fabless companies were counted, then Nvidia would be even the biggest after overtaking Qualcomm and Broadcom. That is, at least when Apple does not count, which does not sell chips separately and is therefore not included, and if Intel does not want to go this way…
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