Data centre overtakes gaming at Nvidia

August 26, 2020 // By Nick Flaherty
Data centre overtakes gaming at Nvidia
Nvidia saw revenues of $3.87bn in the second quarter of the year with record data centre revenues overtaking gaming for the first time

Data centre revenues have overtaken gaming for the first time at GPU designer Nvidia

The company saw a record revenue of $3.87 billion for the latest quarter, up 50 percent from a year earlier and 26 percent on the previous quarter. The Data Centre revenue of $1.75 billion was up 167 percent from a year earlier, overtaking gaming at $1.65bn, up 24 percent from the previous quarter and up 26 percent from a year earlier.

Interconnect specialist Mellanox recorded its first quarter as part of Nvidia, contributed 14 percent of revenue at $1.75bn.

“Our Ampere GPU architecture is sprinting out of the blocks, with the world’s top cloud service providers and server makers moving quickly to offer NVIDIA accelerated computing. Mellanox grew sharply, driven by the need for high-speed networking in cloud data centers to scale-out AI services. And Mercedes-Benz’s partnership with NVIDIA to power its next-generation fleet of luxury cars -- from the computer to the AI software, and from the cloud to the car -- is transformative,” said said Jensen Huang, founder and CEO of Nvidia.

Automotive saw a drop of 28 percent on the previous quarter to $111m, down 47 percent year-over-year partly as a result of the Covid-19 pandemic. “This was slightly better than our outlook of a 40 percent sequential decline as the impact of the pandemic was less pronounced than expected, with auto production volumes starting to recover after bottoming in April,” said Colette Kress, CFO of Nvidia.

“Some of the decline is also due to the roll-off of legacy infotainment revenue, which remained a headwind in future quarters. In June, we announced a landmark partnership with Mercedes-Benz, which starting in 2024 will launch software-defined intelligent vehicles across an entire fleet in using end-to-end Nvidia technology," she said.

Next: AI in Mercedes

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