Nvidia reported record revenue for its third quarter ending Oct. 25, reaching $4.73 billion, an improvement of 57% from a year earlier and up 22% from the prior quarter.
Nvidia CEO Jensen Huang said the ninth-largest semiconductor company globally saw record revenues in gaming, data center and overall.
“Nvidia is firing on all cylinders,” he said.
A strong point was Nvidia AI where the A100 compute platform is ramping up fast and is deployed by top cloud providers.
The big news in the last quarter was Nvidia’s announcement to buy CPU-creator Arm from SoftBank Capital for $40 billion. The company is hoping to take advantage of Arm’s ecosystem for use with AI. Despite some concerns about government approvals, Nvidia said Wednesday that it expects the deal to close in early 2022.
Nvidia plans to build an AI lab in Cambridge, England, to include an AI supercomputer using Nvidia and Arm technology. Some of the biggest criticism of the purchase has come from England where Arm is based.
Of the total $4.73 billion in third quarter revenue, $1.9 billion was from its data center segment sales, an increase of 162% over a year earlier. The acquisition of Mellanox contributed about one-third of data center revenue and 13% of total company revenue.
Gaming segment sales were $2.27 billion of the total, up 37% from a year earlier.
Visualization revenue was $236 million, down 27% from a year earlier and automotive was $125 million, down 23% from a year ago.
Nvidia CFO Colette Kress said Covid-19 continues to affect Nvidia in both positive and negative ways with gaming and data center seeing benefits from work and school at home.
For the fourth quarter, Nvidia expects revenues of $4.8 billion, plus or minus 2%. For the fourth quarter a year earlier, Nvidia had $3.1 billion in revenues.
Nvidia shares were slightly higher at close on Wednesday, reaching 537.15.