As our long-time readers are keenly aware, the product cycles followed by PC OEMs and ODMs for their laptops and desktops are rarely perfectly in sync with the development cycles of the underlying processors. With a desire to refresh their PCs on a ye…
Much of the PC industry has been reporting less than strong results, with declines in PC unit sales leading to lower earnings for many of the big players such as Intel, AMD, and even Apple. NVIDIA has bucked this trend though with a strong quarter to start their fiscal year 2017. Revenue for the quarter was $1.305 billion, up 13% from Q1 FY 2016, with growth in NVIDIA’s GPU business, datacenter, automotive, and professional visualization all showing strong sales. Gross margin for the quarter was 57.5%, up 0.8% from a year ago. Operating income was up 39% to $245 million, and net income came in up 46% to $196 million. This resulted in earnings per share of $0.33.
| NVIDIA Q1 2017 Financial Results (GAAP) | |||||
| Q1’2017 | Q4’2016 | Q1’2016 | Q/Q | Y/Y | |
| Revenue (in millions USD) | $1305 | $1401 | $1151 | -7% | +13% |
| Gross Margin | 57.5% | 56.5% | 56.7% | +1.0% | +0.8% |
| Operating Income (in millions USD) | $245 | $252 | $176 | -3% | +39% |
| Net Income | $196 | $207 | $134 | -5% | +46% |
| EPS | $0.33 | $0.35 | $0.24 | -6% | +38% |
NVIDIA also reports Non-GAAP results, which exclude stock based compensation, warranty charges, restructuring fees, and other fees. The Non-GAAP results had revenue of $1.305 billion, which is up 13%. Gross margin was 58.6%, which is up 1.7%. Operating income was up 39% to $322 million, and net income was up 41% to $263 million. Non-GAAP earnings per share were $0.46.
| NVIDIA Q1 2017 Financial Results (Non-GAAP) | |||||
| Q1’2017 | Q4’2016 | Q1’2016 | Q/Q | Y/Y | |
| Revenue (in millions USD) | $1305 | $1401 | $1151 | -7% | +13% |
| Gross Margin | 58.6% | 57.2% | 56.9% | +1.4% | +1.7% |
| Operating Income (in millions USD) | $322 | $356 | $231 | -10% | +39% |
| Net Income | $263 | $297 | $187 | -11% | +41% |
| EPS | $0.46 | $0.52 | $0.33 | -12% | +39% |
GPUs accounted for most of the revenue, with GPU revenue coming in at $1.08 billion for the quarter. This is a gain of 15% year-over-year, driven by strong growth in the GeForce lineup. NVIDIA has recently announced their latest Pascal architecture with the GTX 1080 and GTX 1070, with cards coming soon, so I would expect strong sales to continue. Tegra processor revenue for the quarter was $160 million, up 10% compared to Q1 2016, thanks to continued growth in Tegra automotive.
Gaming platform revenue was up 17% to $687 million, consistent with the strong growth in PC gaming compared to the rest of the PC market. Quadro revenue, filed under Professional Visualization, was up 4% to $189 million.
Datacenter revenue which includes Tesla and GRID results were a record $143 million for the quarter, up 63% from a year ago, driven by demand for GPU acceleration for deep learning.
Automotive revenue was $113 million of the $160 million for Tegra, up 47% year-over-year. It appears that NVIDIA made the right call with Tegra by mostly abandoning the mobile market where competition is pretty fierce, and they’ve really gained a good diversified foothold in the automotive sector where higher TDPs can let them drive larger GPUs.
Finally, the licensing deal with Intel, which is going to end soon, accounted for $66 million in revenue.
| NVIDIA Quarterly Revenue Comparison (GAAP) | |||||
| In millions | Q1’2017 | Q4’2016 | Q1’2016 | Q/Q | Y/Y |
| GPU | $1079 | $1178 | $940 | -8% | +15% |
| Tegra Processor | $160 | $157 | $145 | +2% | +10% |
| Other | $66 | $66 | $66 | flat | flat |
NVIDIA has had a pretty successful run since the introduction of their Maxwell products, and these results are all prior to Pascal even coming on the market in a consumer card. NVIDIA’s outlook for Q2 is revenue of $1.35 billion plus or minus 2%, and GAAP gross margin of 57.7%, plus or minus 0.5%.
Source: NVIDIA Investor Relations
Much of the PC industry has been reporting less than strong results, with declines in PC unit sales leading to lower earnings for many of the big players such as Intel, AMD, and even Apple. NVIDIA has bucked this trend though with a strong quarter to start their fiscal year 2017. Revenue for the quarter was $1.305 billion, up 13% from Q1 FY 2016, with growth in NVIDIA’s GPU business, datacenter, automotive, and professional visualization all showing strong sales. Gross margin for the quarter was 57.5%, up 0.8% from a year ago. Operating income was up 39% to $245 million, and net income came in up 46% to $196 million. This resulted in earnings per share of $0.33.
| NVIDIA Q1 2017 Financial Results (GAAP) | |||||
| Q1’2017 | Q4’2016 | Q1’2016 | Q/Q | Y/Y | |
| Revenue (in millions USD) | $1305 | $1401 | $1151 | -7% | +13% |
| Gross Margin | 57.5% | 56.5% | 56.7% | +1.0% | +0.8% |
| Operating Income (in millions USD) | $245 | $252 | $176 | -3% | +39% |
| Net Income | $196 | $207 | $134 | -5% | +46% |
| EPS | $0.33 | $0.35 | $0.24 | -6% | +38% |
NVIDIA also reports Non-GAAP results, which exclude stock based compensation, warranty charges, restructuring fees, and other fees. The Non-GAAP results had revenue of $1.305 billion, which is up 13%. Gross margin was 58.6%, which is up 1.7%. Operating income was up 39% to $322 million, and net income was up 41% to $263 million. Non-GAAP earnings per share were $0.46.
| NVIDIA Q1 2017 Financial Results (Non-GAAP) | |||||
| Q1’2017 | Q4’2016 | Q1’2016 | Q/Q | Y/Y | |
| Revenue (in millions USD) | $1305 | $1401 | $1151 | -7% | +13% |
| Gross Margin | 58.6% | 57.2% | 56.9% | +1.4% | +1.7% |
| Operating Income (in millions USD) | $322 | $356 | $231 | -10% | +39% |
| Net Income | $263 | $297 | $187 | -11% | +41% |
| EPS | $0.46 | $0.52 | $0.33 | -12% | +39% |
GPUs accounted for most of the revenue, with GPU revenue coming in at $1.08 billion for the quarter. This is a gain of 15% year-over-year, driven by strong growth in the GeForce lineup. NVIDIA has recently announced their latest Pascal architecture with the GTX 1080 and GTX 1070, with cards coming soon, so I would expect strong sales to continue. Tegra processor revenue for the quarter was $160 million, up 10% compared to Q1 2016, thanks to continued growth in Tegra automotive.
Gaming platform revenue was up 17% to $687 million, consistent with the strong growth in PC gaming compared to the rest of the PC market. Quadro revenue, filed under Professional Visualization, was up 4% to $189 million.
Datacenter revenue which includes Tesla and GRID results were a record $143 million for the quarter, up 63% from a year ago, driven by demand for GPU acceleration for deep learning.
Automotive revenue was $113 million of the $160 million for Tegra, up 47% year-over-year. It appears that NVIDIA made the right call with Tegra by mostly abandoning the mobile market where competition is pretty fierce, and they’ve really gained a good diversified foothold in the automotive sector where higher TDPs can let them drive larger GPUs.
Finally, the licensing deal with Intel, which is going to end soon, accounted for $66 million in revenue.
| NVIDIA Quarterly Revenue Comparison (GAAP) | |||||
| In millions | Q1’2017 | Q4’2016 | Q1’2016 | Q/Q | Y/Y |
| GPU | $1079 | $1178 | $940 | -8% | +15% |
| Tegra Processor | $160 | $157 | $145 | +2% | +10% |
| Other | $66 | $66 | $66 | flat | flat |
NVIDIA has had a pretty successful run since the introduction of their Maxwell products, and these results are all prior to Pascal even coming on the market in a consumer card. NVIDIA’s outlook for Q2 is revenue of $1.35 billion plus or minus 2%, and GAAP gross margin of 57.7%, plus or minus 0.5%.
Source: NVIDIA Investor Relations
Micron Technology this week confirmed that it had begun mass production of GDDR5X memory. As revealed last week, the first graphics card to use the new type of graphics DRAM will be NVIDIA’s upcoming GeForce GTX 1080 graphics adapter powered by the company’s new high-performance GPU based on its Pascal architecture.
Micron’s first production GDDR5X chips (or, how NVIDIA calls them, G5X) will operate at 10 Gbps and will enable memory bandwidth of up to 320 GB/s for the GeForce GTX 1080, which is only a little less than the memory bandwidth of NVIDIA’s much wider memory bus equipped (and current-gen flagship) GeForce GTX Titan X/980 Ti. NVIDIA’s GeForce GTX 1080 video cards are expected to hit the market on May 27, 2016, and presumably Micron has been helping NVIDIA stockpile memory chips for a launch for some time now.
| NVIDIA GPU Specification Comparison | |||||||
| GTX 1080 | GTX 1070 | GTX 980 Ti | GTX 980 | GTX 780 | |||
| TFLOPs (FMA) | 9 TFLOPs | 6.5 TFLOPs | 5.6 TFLOPs | 5 TFLOPs | 4.1 TFLOPs | ||
| Memory Clock | 10Gbps GDDR5X | GDDR5 | 7Gbps GDDR5 |
6Gbps GDDR5 |
|||
| Memory Bus Width | 256-bit | ? | 384-bit | 256-bit | 384-bit | ||
| VRAM | 8 GB | 8 GB | 6 GB | 4 GB | 3 GB | ||
| VRAM Bandwidth | 320 GB/s | ? | 336 GB/s | 224 GB/s | 288 GB/s | ||
| Est. VRAM Power Consumption | ~20 W | ? | ~31.5 W | ~20 W | ? | ||
| TDP | 180 W | ? | 250 W | 165 W | 250 W | ||
| GPU | “GP104” | “GP104” | GM200 | GM204 | GK110 | ||
| Manufacturing Process | TSMC 16nm | TSMC 16nm | TSMC 28nm | ||||
| Launch Date | 05/27/2016 | 06/10/2016 | 05/31/2015 | 09/18/2014 | 05/23/2013 | ||
Earlier this year Micron began to sample GDDR5X chips rated to operate at 10 Gb/s, 11 Gb/s and 12 Gb/s in quad data rate (QDR) mode with 16n prefetch. However, it looks like NVIDIA decided to be conservative and only run the chips at the minimum frequency.
As reported, Micron’s first GDDR5X memory ICs (integrated circuits) feature 8 Gb (1 GB) capacity, sport 32-bit interface, use 1.35 V supply and I/O voltage as well as 1.8 V pump voltage (Vpp). The chips come in 190-ball BGA packages with 14×10 mm dimensions, so, they will take a little less space on graphics cards than GDDR5 ICs.
The announcement by Micron indicates that the company will be the only supplier of GDDR5X memory for NVIDIA’s GeForce GTX 1080 graphics adapters, at least initially. Another important thing is that GDDR5X is real, it is mass produced now and it can indeed replace GDDR5 as a cost-efficient solution for gaming graphics cards. How affordable is GDDR5X? It should not be too expensive – particularly as it’s designed as an alternative to more complex technologies such as HBM – but this early in the game it’s definitely a premium product over tried and true (and widely available) GDDR5.
Micron Technology this week confirmed that it had begun mass production of GDDR5X memory. As revealed last week, the first graphics card to use the new type of graphics DRAM will be NVIDIA’s upcoming GeForce GTX 1080 graphics adapter powered by the company’s new high-performance GPU based on its Pascal architecture.
Micron’s first production GDDR5X chips (or, how NVIDIA calls them, G5X) will operate at 10 Gbps and will enable memory bandwidth of up to 320 GB/s for the GeForce GTX 1080, which is only a little less than the memory bandwidth of NVIDIA’s much wider memory bus equipped (and current-gen flagship) GeForce GTX Titan X/980 Ti. NVIDIA’s GeForce GTX 1080 video cards are expected to hit the market on May 27, 2016, and presumably Micron has been helping NVIDIA stockpile memory chips for a launch for some time now.
| NVIDIA GPU Specification Comparison | |||||||
| GTX 1080 | GTX 1070 | GTX 980 Ti | GTX 980 | GTX 780 | |||
| TFLOPs (FMA) | 9 TFLOPs | 6.5 TFLOPs | 5.6 TFLOPs | 5 TFLOPs | 4.1 TFLOPs | ||
| Memory Clock | 10Gbps GDDR5X | GDDR5 | 7Gbps GDDR5 |
6Gbps GDDR5 |
|||
| Memory Bus Width | 256-bit | ? | 384-bit | 256-bit | 384-bit | ||
| VRAM | 8 GB | 8 GB | 6 GB | 4 GB | 3 GB | ||
| VRAM Bandwidth | 320 GB/s | ? | 336 GB/s | 224 GB/s | 288 GB/s | ||
| Est. VRAM Power Consumption | ~20 W | ? | ~31.5 W | ~20 W | ? | ||
| TDP | 180 W | ? | 250 W | 165 W | 250 W | ||
| GPU | “GP104” | “GP104” | GM200 | GM204 | GK110 | ||
| Manufacturing Process | TSMC 16nm | TSMC 16nm | TSMC 28nm | ||||
| Launch Date | 05/27/2016 | 06/10/2016 | 05/31/2015 | 09/18/2014 | 05/23/2013 | ||
Earlier this year Micron began to sample GDDR5X chips rated to operate at 10 Gb/s, 11 Gb/s and 12 Gb/s in quad data rate (QDR) mode with 16n prefetch. However, it looks like NVIDIA decided to be conservative and only run the chips at the minimum frequency.
As reported, Micron’s first GDDR5X memory ICs (integrated circuits) feature 8 Gb (1 GB) capacity, sport 32-bit interface, use 1.35 V supply and I/O voltage as well as 1.8 V pump voltage (Vpp). The chips come in 190-ball BGA packages with 14×10 mm dimensions, so, they will take a little less space on graphics cards than GDDR5 ICs.
The announcement by Micron indicates that the company will be the only supplier of GDDR5X memory for NVIDIA’s GeForce GTX 1080 graphics adapters, at least initially. Another important thing is that GDDR5X is real, it is mass produced now and it can indeed replace GDDR5 as a cost-efficient solution for gaming graphics cards. How affordable is GDDR5X? It should not be too expensive – particularly as it’s designed as an alternative to more complex technologies such as HBM – but this early in the game it’s definitely a premium product over tried and true (and widely available) GDDR5.