Nvidia ends FY2017 with impressive growth
February 10, 2017 | 11:16
Nvidia has released its report for the 2017 financial year, which contrary to what calendars might say it has just finished, and it makes for impressive reading: Revenue is up 38 percent thanks to new efforts in the data centre and automotive fields.
Nvidia's results for the 2017 financial year show pretty incredible growth from a company which has come to dominate the discrete graphics and GPU-based accelerator markets: Compared to its 2016 financial year, Nvidia's revenue was up 38 percent and its gross margin up from 56.1 percent to 58.8 percent to finish the year on a net income of a devilish $1.666 billion. Breaking that down into its final quarter, it's clear that it was a bull run in the last three months that spelled success: The company's revenue was up eight percent sequentially and 55 percent year-on-year, while its profit margin hit a whopping 60 percent - up from 59 percent in the third quarter and 56.5 percent in the same period last year.
'We had a great finish to a record year, with continued strong growth across all our businesses,' crowed Nvidia founder and chief executive Jen-Hsun Huang during the company's earnings call. 'Our GPU computing platform is enjoying rapid adoption in artificial intelligence, cloud computing, gaming, and autonomous vehicles. Deep learning on Nvidia GPUs, a breakthrough approach to AI, is helping to tackle challenges such as self-driving cars, early cancer detection and weather prediction. We can now see that GPU-based deep learning will revolutionise major industries, from consumer internet and transportation to health care and manufacturing. The era of AI is upon us.'
It's these, it seems, that has driven much of Nvidia's growth. While the company picked the GeForce GTX 1050 and 1050 Ti launches, plus the new Shield TV microconsole, as highlights in the gaming sector, it had more to say in the data centre and automotive markets: In the last quarter of the financial year alone, it has signed partnerships with Audi, Mercedes-Benz, Bosch, and ZF to bring self-driving cars based on Nvidia technology to market, partnered with mapping specialist Here for real-time autonomous vehicle mapping, partnered with Zenrin for a second 'cloud-to-car HD map solution,' and has announced deals with Microsoft on the Nvidia DGX-1 powered Cognitive Toolkit, an AI framework dubbed Candle in partnership with the US Department of Energy (DoE) and the National Cancer Institute, and launched a DGX-1-based SaturnV supercomputer which it claims is the world's most efficient.
Investors, however, seem divided on Nvidia's seemingly impressive results: the company's stock took a 1.88 percent dip before NASDAQ closed yesterday, and has risen only 1.13 percent in pre-market trading following the earnings announcement.