On Wednesday, NVIDIA released its second quarter results for fiscal year 2021, which recorded revenue of $3.87 billion in the second quarter, up 50% from $2.58 billion in the same period last year and 26% higher than $3.08 billion in the previous quarter.
it is worth noting that its data center revenue was US $1.75 billion, more than twice that of 655 million yuan in the same period of last year, exceeding the average analyst expectation of $1.71 billion. Meanwhile, NVIDIA’s long-standing main source of revenue, video games, generated $1.65 billion in revenue this quarter.
this is the first time that NVIDIA’s data center business has exceeded the video game business. Does this phenomenon indicate that the data center market is more promising? In the future, will the data center surpass video games become NVIDIA’s largest business?
according to the financial report, NVIDIA made many achievements in the data center field in the last quarter, including launching more than 50 systems carrying NVIDIA A100 together with the world’s leading server manufacturers; two thirds of the world’s fastest supercomputers 500 were equipped with NVIDIA products; NVIDIA mellanox UFM cyber AI platform was launched. In the latest mlperf benchmark, NVIDIA has broken 16 AI performance records.
in April this year, NVIDIA completed the acquisition of mellanox for us $7 billion, which is also the largest acquisition of NVIDIA since its establishment.
mallanox is a company that provides a wide range of data center products including Ethernet switches, chips and Infiniband intelligent interconnection solutions for server, storage and hyper converged infrastructure. It is reported that more than half of the world’s fastest supercomputers and many leading large-scale data centers use mallanox products, and its Infiniband interconnection technology and Ethernet product line occupy an absolute advantage. Therefore, mallanox has great potential in the data center field.
“with the world’s top cloud service providers and server manufacturers accelerating the deployment of NVIDIA accelerated computing, our new ampere GPU is moving forward at full speed. Cloud data centers need high-speed networks to expand artificial intelligence services, which promotes the dramatic increase of mellanox business volume.” Said Huang Renxun, chief executive of NVIDIA.
the second quarter was the first full quarter of NVIDIA’s acquisition of mallanox. Collette Kress, chief financial officer of NVIDIA, said on a conference call that “in the second quarter, mellanox contributed about 14% of total revenue and more than 30% of data center revenue, and was a key part of several major new products launched by NVIDIA this quarter.”
although NVIDIA announced its latest server product based on ampere architecture earlier this year, it has made great strides in the data center field. However, as a company famous for GPU, the sales volume of data center in the anti game market may be temporary.
Vivek Arya, an analyst at Bank of America, predicts that Sony and Microsoft’s upcoming next-generation game console will open a super cycle of GPU upgrading. At present, only 9% of PC gamers’ GPUs can meet the performance requirements of the upcoming games. Therefore, the large-scale upgrade of game consoles will drive NVIDIA’s game sales growth.
according to Kress [byg3] Generally speaking, the game update cycle is about three and a half years, and the company expects the number of video game players to grow by about 25%. With game PC and Nintendo’s ntdoy game console increasing by 0.23% during the holiday season, the game market is expected to surpass the data center sales in the third quarter, but the data center and game market may be on a par.
Huang Renxun said that in addition to a large number of game machines, the popularity of covid-19 has driven more people to play video games, and games are becoming the largest entertainment media in the world. “We expect games to be very strong in the second half of the year and I think it’s probably one of the best gaming seasons ever.”
in addition, NVIDIA will release the next generation of ampere based GPU on September 1. It is rumored that the RTX 3090 graphics card, which uses gddr6x memory for the first time, is likely to become a star product in the press conference.
this means that, compared with the second quarter, the proportion of the total revenue of the data center in the third quarter will decline, and NVIDIA will continue to occupy a high position in the game market.
NVIDIA’s continued growth in the data center seems to indicate that NVIDIA’s business focus is shifting from video games to data centers. However, according to NVIDIA’s previous media interviews, the company’s video games and data center are in a “competitive” state, and the two chips are equally important.
although the epidemic has affected NVIDIA’s professional vision and automotive platform business, NVIDIA is advancing in a new wave of industrial revolution driven by games, artificial intelligence, cloud computing and Autonomous machines. Huawei has finally made a choice! Xiaomi and ov have also followed up. Have you ever thought about today?