Nvidia’s financial calendar meant things would get better around May). But now the Green Team has backtracked and says that constraints will remain for most of the year,
Yesterday, Nvidia held their annual GPU Technology Conference (GTC) event aimed at the more corporate business side of things like AI, data centres etc. But whilst that was going on, Nvidia also held an investor day for their shareholders, which revealed their updated thoughts on the GPU shortage situation.
“Overall demand remains very strong and continues to exceed supply while our channel inventories remain quite lean,” said Nvidia CFO, Colette Kress, echoing a similar statement given previously about channel inventories remaining lean “throughout Q1.”
But following on from that, Kress mentioned that they “expect demand to continue to exceed supply for much of this year.
AMD also had record earnings during the same GPU shortage quarter, so let’s not pretend there’s good guys and bad guys. If AMD, NVIDIA and their AIBs sell direct to mining farms, the warranties are waived, support is waived and so on.
They all pretend to be your personal friend, they promise you that “next month things will get better”, but they are not and it never does. Also, speaking of the “end consumer”, that entity is a whiny entitled son’of’a…
at least compared to the “mining farm” entity.
And it’s really a WIN-WIN situation for them.
Wall Street was expecting to see earnings of 79 cents per share with $2.2 billion in revenue.
Shares of Nvidia were up nearly 6% in after market trading.
Nvidia said GPU business revenue was $2.02 billion, down 27% from the year ago period, due to declines in gaming and data center revenue, as well as the loss related to cryptocurrency mining processors.
Breaking down business segments, Nvidia said gaming revenue declined 39% from a year ago to $1.06 billion, but increased 11% compared to last quarter. The company said the sequential increase reflects growth in gaming GPUs.
Meanwhile, data center revenue declined 10% year over year $634 million.
But AMD is only committing to make them available “to as many gamers as possible,” which may not reassure buyers who felt AMD had a paper launch to begin with.
— Sean Hollister, The Verge
Dr. Lisa Su holding Radeon RX 6800 XT, Source: AMD
AMD CEO Dr.
Lisa Su recently sat down with select media for an interview. Interestingly, AMD requested that the media should not publish the full transcript from the interview, but AnandTech has found a way to publish the most interesting parts in a quote and explain.
AMD CEO confirmed that the company anticipated and prepared for the increased tariffs in the US.
The company encourages its partners to sell as many cards directly to customers as possible, which sounds like a very blank statement.
Little birds have spoken. NVIDIA is quietly planning to launch more models this year.
New graphics cards this year
New models would probably include more GK104/106 rebrands. NVIDIA could launch more GK208 entry-level models as well.
We are probably expecting more Titanium cards with boost mode enabled. With GeForce 600 series NVIDIA launched three x50 cards, I expect 700 series to be no different.
GeForce GTX 790 in few months?
However this is not all.
NVIDIA is also working on a new high-end model. At this point I don’t know if this is the so-called TITAN ULTRA with fully enabled GK110 GPU or, more likely, GeForce GTX 790 with two GK110s. Assuming that the full GK110 processor is somewhat dedicated to the professional segment, and NVIDIA made dual-gpu cards a standard, my bet is on GTX 790.
We believe Gaming also benefited from cryptocurrency mining demand, although it is hard to determine to what extent.”
4:34 PM ET: Professional Visualization revenue, which covers Nvidia’s Quadro and RTX A-series GPUs, rose 21% Q/Q and Y/Y to $372M, beating a $315M consensus.
Automotive revenue was up 6% Q/Q and 1% Y/Y to $154M, slightly beating a $152M consensus.
4:32 PM ET: Notably, Nvidia’s “OEM and Other” revenue, which among other things includes sales of non-gaming GPUs (such as GPUs targeting crypto miners), rose 114% Q/Q and 137% Y/Y to $327M, trouncing a $199M consensus.
Nvidia says in the CFO commentary that mining-specific GPUs accounted for $155M of this revenue.
Our FQ2 outlook assumes CMP (mining GPU) revenue of $400M.
5:07 PM ET: Kress: Nvidia’s Reflex technology (reduces game latency) is becoming a must-have feature for eSports gamers.
5:05 PM ET: Kress goes over recent notebook GPU design wins. Says more than 140 RTX 30-powered laptops have been designed.
5:04 PM ET: Kress is talking.
Adds that Nvidia expects gaming GPUs to remain supply-constrained into the second half of the year.
5:02 PM ET: IR chief Simona Jankowski is going over Nvidia’s safe-harbor statement. As usual, CEO Jensen Huang and CFO Colette Kress will be on the call.
Gamers to face challenging times with non-existent GPU stock
AMD and NVIDIA are expecting further delays in GPU shipments in the coming months, companies have confirmed over the past few days to the media outlets.
Not only is the market is facing shortages in the substrate, components, and the GPUs themselves, but gamers also need to face price hikes on PC components in the United States due to increased tariffs, and across the world due to the rising popularity of GPU mining.
Jensen Huang holding GeForce RTX 3080, Source: NVIDIA
In an interview with Seeking Alpha, Colette Kress, EVP, and CFO of NVIDIA confirmed that demand has exceeded supply and that inventory is to remain lean through Q1.
Any comments about how much mining-related revenue is baked into the FQ2 sales guidance will especially be closely watched.
4:38 PM ET: Nvidia on its Data Center sales:
“The year-on-year revenue growth was driven primarily by the Mellanox acquisition and the ramp of NVIDIA Ampere GPU architecture products into vertical industries and hyperscale customers. Sequentially, growth in Data Center came from both compute and networking products, primarily driven by hyperscale customers.”
4:37 PM ET: Nvidia on its Gaming sales:
“We continued to benefit from strong sales of our GeForce RTX 30 Series based on the NVIDIA Ampere architecture.
Nvidia’s Ampere-architecture server GPUs are made by TSMC, while its Ampere gaming GPUs are made by Samsung.
4:06 PM ET: As was the case 3 months ago, expectations are high: Nvidia is going into its report sporting a $391B market cap, with shares up ~20% YTD and ~80% over the last 12 months amid sky-high demand for both its gaming and server GPUs.
4:04 PM ET: For the July quarter (Nvidia typically shares revenue guidance within its report), the revenue consensus is at $5.47B (+42%).
4:03 PM ET: On average, analysts polled by FactSet expect Nvidia to report April quarter revenue of $5.4B (+75% Y/Y, thanks to both organic growth and the Mellanox acquisition, which closed in April 2020), GAAP EPS of $2.52 and non-GAAP EPS of $3.29.
4:00 PM ET: Hi.
FQ2, while signaling that they’d grow further in 2H21 amid strong demand from gamers, hyperscalers and traditional enterprises.
Thanks for joining us.
6:07 PM ET: Huang with some closing remarks. Reiterates Nvidia’s goals of being a “data center-scale” computing company and democratizing access to AI computing.
Also says he’ll have more to share in the future about Nvidia’s Clara platform for healthcare AI projects. Declares Nvidia “has transformed its business model beyond chips,” as it rolls out software solutions such as Omniverse, its enterprise AI suite and offerings for Mercedes owners in partnership with Mercedes-Benz.
6:03 PM ET: Question about whether Nvidia still expects Gaming revenue to grow Q/Q through the year, and whether Data Center revenue could do the same.
Kress: We have additional supply coming.