Nvidia Rings In Record Q2 Revenues Powered By Ampere GPUs, Mellanox Acquisition

NVIDIA Corporation NVDA reported strong quarterly results that came in ahead of expectations, thanks to a contribution from its recent Mellanox acquisition and its newly introduced Ampere architecture-based GPUs.

Nvidia's Key Q2 Metrics: Fiscal 2021 second-quarter earnings on a non-GAAP basis increased to $2.18 per share and revenues came in at a record $3.87 billion

This compares to the $1.24 per share in non-GAAP EPS and $2.58 billion in revenues the company reported for the second quarter of fiscal year 2020.

Analysts, on average, estimated EPS of $1.97 on revenues of $3.65 billion.

The company had guided to second-quarter revenues of $3.65 billion, plus or minus 2%.

Mellanox contributed 14% of the total revenues, Nvidia said. Non-GAAP gross margin expanded from 60.1% to 66%.

"Adoption of NVIDIA computing is accelerating, driving record revenue and exceptional growth," said Jensen Huang, CEO of NVIDIA.

Nvidia Segmental Performance: Graphics segment revenues climbed 16% year-over-year and 9% quarter-over-quarter to $2.09, while the Compute & Networking segment's revenues, including Mellanox, jumped 130% year-over-year and 9% sequentially to $1.78 billion.

From a market-platform perspective, Gaming revenues accounted 42.6% of the total and grew 26% from the year-ago period to $1.65 billion.

PC gaming demands picked substantially in the quarter, and Nvidia is the key primary beneficiary of the trend, Wedbush analyst Matthew Bryson said in a note previewing Nvidia's results.

Data center revenues climbed 167% to $1.75 billion, or 45.3% of the total revenues. Professional visualization and automotive fetched revenues of $203 million and $111 million, respectively.

Nvidia's Outlook: For the third quarter of fiscal year 2021, Nvidia expects revenues of $4.40 billion, plus or minus 2%, while analysts, on average, estimate $3.97 billion.

"Despite the pandemic's impact on our professional visualization and automotive platforms, we are well positioned to grow, as gaming, AI, cloud computing and autonomous machines drive the next industrial revolution around the world," Huang said.

Nvidia Stock: Nvidia shares have been on a tear this year, having gained about 109% in the year-to-date period. The stock is currently perched at a record high.

In after-hours trading, Nvidia shares were down 0.51% to $483.04.

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