Could Be Worse; It Could Be Raining
Our prognosis that NVIDIA’s earnings would not be quite as bad as Intel’s disappointing quarter were not quite accurate; US$6.70 billion as opposed to the expected $8.1 billion. In Jensen Huang’s announcement there was little in the way of good news, the only sector of NVIDIA that did well was the Data Center which earned $3.81 billion, up 1% from last quarter and 61% up from last year. That is certainly good news for the company, it might not be as exciting as a new GPU, but it does make up over half of their earnings.
The GPU division had the worst news, bringing in a mere $2.04 billion this quarter. That is down 44% from last quarter and by almost 35% compared to this time last year. It would be easy to blame GPU prices starting to approach normality, but the truth is that this is part of the bigger problems faced by all parts of the PC market. While sales are down for everyone, it is the price of the components that make up their GPUs which had a large effect on NVIDIA’s earnings. It seems that NVIDIA spent a fair amount of money ensuring they had supplies of necessary components to be able to provide as many GPUs as they could. That might be little comfort for those who were shopping for a new video card over the past year or so, but certainly kept supplies up for miners willing to pay the exorbitant mark up fees some retailers were charging.
In better news, the SIGGRAPH keynote wrapped up earlier today and NVIDIA definitely has plans for the Metaverse. They are working with Meta to become the go-to architecture for developing apps using the Metaverse’s Universal Scene Description language as well as developing their own NVIDIA Omniverse Avatar Cloud Engine. Interestingly, NVIDIA seems to be developing technology for online avatars and mundane robotics in tandem. This makes some sense in that you have to develop effective and realistic movements for both online avatars and real world robotics applications; it will be interesting to see how well this initiative works.
You can find more on the 3D internet that NVIDIA envisions here.
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