NVIDIA Announces Financial Results for Second Quarter Fiscal 2020

[btarunr]

NVIDIA today reported revenue for the second quarter ended July 28, 2019, of $2.58 billion compared with $3.12 billion a year earlier and $2.22 billion in the previous quarter. GAAP earnings per diluted share for the quarter were $0.90, compared with $1.76 a year ago and $0.64 in the previous quarter. Non-GAAP earnings per diluted share were $1.24 compared with $1.94 a year earlier and $0.88 in the previous quarter.

"We achieved sequential growth across our platforms," said Jensen Huang, founder and CEO of NVIDIA. "Real-time ray tracing is the most important graphics innovation in a decade. Adoption has reached a tipping point, with NVIDIA RTX leading the way. "NVIDIA accelerated computing momentum continues to build as the industry races to enable the next frontier in artificial intelligence, conversational AI, as well as autonomous systems like self-driving vehicles and delivery robots," he said.



NVIDIA will pay its next quarterly cash dividend of $0.16 per share on September 20, 2019, to all shareholders of record on August 29, 2019. The first priority for the company's cash balance is the purchase of Mellanox Technologies, Ltd. The company will return to repurchasing its stock after the close of the Mellanox acquisition. The regulatory approval process for this acquisition is progressing as expected, and NVIDIA continues to work toward closing the deal by the end of this calendar year.

NVIDIA's outlook for the third quarter of fiscal 2020 is as follows:
Revenue is expected to be $2.90 billion, plus or minus 2 percent.

• GAAP and non-GAAP gross margins are expected to be 62.0 percent and 62.5 percent, respectively, plus or minus 50 basis points.
• GAAP and non-GAAP operating expenses are expected to be approximately $980 million and $765 million, respectively.
• GAAP and non-GAAP other income and expense are both expected to be income of approximately $25 million.
• GAAP and non-GAAP tax rates are both expected to be 10 percent, plus or minus 1 percent, excluding any discrete items. GAAP discrete items include excess tax benefits or deficiencies related to stock-based compensation, which are expected to generate variability on a quarter by quarter basis.

Highlights
Since the end of the first quarter of fiscal 2020, NVIDIA has achieved progress in these areas:
Data Center

• Announced breakthroughs in language understanding that allow organizations to enable real-time conversational AI, with record-setting performance in running training and inference on the BERT AI language model.
• Announced that NVIDIA's DGX SuperPOD - which provides the AI infrastructure for the company's autonomous-vehicle development program - was ranked the world's 22nd fastest supercomputer and that its reference architecture is available commercially through partners.
• Set eight records in AI training performance in the latest MLPerf benchmarking tests.
• Announced support for Arm CPUs, providing a new path to build highly energy-efficient, AI-enabled exascale supercomputers.

Gaming

• Supercharged its GPU lineup with GeForce RTX 2060 SUPER, GeForce RTX 2070 SUPER and GeForce RTX 2080 SUPER, delivering best-in-class gaming performance and real-time ray tracing.
• Announced that new blockbuster titles including Call of Duty: Modern Warfare, Cyberpunk 2077, Watch Dogs: Legion, and Wolfenstein: Youngblood will feature ray tracing, propelling the momentum of RTX technology.
• Unveiled the new NVIDIA Studio platform for the world's tens of millions of online and studio-based creatives, with the introduction of 27 new RTX Studio laptops powered by GeForce RTX and Quadro RTX GPUs.
• Announced the launch of 25 more gaming laptops by major makers fueled by NVIDIA Turing GPUs, bringing the total number of Turing laptops to more than 100.

Professional Visualization

• Announced that in its first full year, NVIDIA RTX ray tracing has emerged as the new industry standard in product design, architecture, effects and scientific visualization, with the support of more than 40 key applications, including eight introduced at SIGGRAPH.
• Rolled out a full range of Turing architecture-based Quadro GPUs for mobile workstations with global system providers.

Automotive

• Volvo Group announced that it is using the NVIDIA DRIVE end-to-end autonomous driving platform to train networks in the data center, test them in simulation and deploy them in self-driving vehicles, targeting freight transport, refuse and recycling collection, public transport, construction, mining, forestry and more.

View at TechPowerUp Main Site

 

[Space Lynx]

25 more turing laptops? i have not seen anything with a super edition of turing in a laptop yet, huh. i wonder if 10nm intel and super turning is coming to laptops by end of year. will be expensive as crap so meh. nm anyway

 

[medi01]

What to say, when your revenue is down 18% and income down 50%: "We achieved sequential growth across our platforms,"
Thank god, Q1 was even worse.

10nm intel and super turning is coming to laptops by end of year. will be expensive as crap

I think it depends on how you rate current offerings.

 

[Fluffmeister]

To be fair, 552 is more than 32, and they don't even sell CPUs with silly names.

 

[jabbadap]

Soo, Revenue from gaming segment is again more than all other segments added together.

Spoiler: Revenue trend

 

[bug]

Good. This is the only way to signal Nvidia their next GPUs simply cannot be as expensive as Turing. I hope they get the message.

 

[Renald]

Good. This is the only way to signal Nvidia their next GPUs simply cannot be as expensive as Turing. I hope they get the message.

I think the 2070 SUPER and 2060 SUPER are already showing that people didn't fall that time !
200$ rebate on the 2080 to become 2070 SUPER : that's the normal price

 

[Space Lynx]

I think the 2070 SUPER and 2060 SUPER are already showing that people didn't fall that time !
200$ rebate on the 2080 to become 2070 SUPER : that's the normal price

yep people are learning in larger and larger numbers, and it will continue to hurt Nvidia's bottom line now that AMD has competitive offerings. I mean in a lot of games at 1440p, sekiro shadows die twice, a 5700 XT is only 10 fps slower than rtx 2080 super at almost half the cost...

 

[B-Real]

I think the 2070 SUPER and 2060 SUPER are already showing that people didn't fall that time !
200$ rebate on the 2080 to become 2070 SUPER : that's the normal price

I don't think that "cut" is enough. 1060 was $250, 1070 was $380, 1080 was $600. Now you got cards for $350, $500 and $700. Still more expensive by $100, 120 and 100. Not to speak of the 2080Ti. This RTX pricing was ridiculous. 1660 and 60Ti pricing was much better.

 

[Deleted member 177333]

I think the 2070 SUPER and 2060 SUPER are already showing that people didn't fall that time !
200$ rebate on the 2080 to become 2070 SUPER : that's the normal price

No doubt. It's good to see people not taking the bait this time. As someone here on TPU mentioned in one of the other Super threads, many folks are going "Super. Hard. Pass." on this one. Only way I'm getting a set of Turing cards is 2nd hand market. Their retail pricing is ludicrous.

 

[TheoneandonlyMrK]

“At this point, it’s a foregone conclusion that if you’re going to buy a new graphics card, it’s going to last you two, three, four years, and to not have ray tracing is just crazy.” Huang also said this and “if you’re going to buy a new graphics card… to not have ray tracing is just crazy.”

Seams strange to blurt out such nonsense when your selling 1660's etc , he shouldnt sometimes sound like he's sweating , as a CEO i mean.

by 2023 i May HAVE to get an RTX card , i'll bite sooner no doubt but now is not that time.

 

[Fluffmeister]

Soo, Revenue from gaming segment is again more than all other segments added together.

Spoiler: Revenue trend

View attachment 129340

Indeed, now either their GeForce and Turing cards are selling badly... or they aren't. The lack of Playstation and XBox clearly hasn't hurt them.

 

[John Naylor]

Good. This is the only way to signal Nvidia their next GPUs simply cannot be as expensive as Turing. I hope they get the message.

You do realize that since 200, the average price of the top card ... xx80 or equivalent has been $700 in 2017 dollars ... that would be $724 in 2019 dollars ... Today, the best performing 2080 that TPU tested can be had for $659 and that includes the 10 or 25% tariff whatever was in effect when it shipped. The 2080 Ti is in a unique position as a) normally they don't ship till 10 months or so after the 2080 and b) right now nvidi is having trouble keeping production in line with demand. Until folks stop buying them, I don't see them cutting proces.

yep people are learning in larger and larger numbers, and it will continue to hurt Nvidia's bottom line now that AMD has competitive offerings. I mean in a lot of games at 1440p, sekiro shadows die twice, a 5700 XT is only 10 fps slower than rtx 2080 super at almost half the cost...

With both cards overclocked, the AIB 5700XT can't keep up with the AIB 2070 using TPUs 20+ game test suite... nor do they catch the 20780 in noise or temps... get very close but not equal. performance remains about 5% higher for the 2070.

I don't see nVidia sweating until their market share slips.... right now there are more 1060s in use than all AMD cards combined.

AMD doesn't have a card in the Top 10
AMD has just 2 cards in the Top 25 (11th and 25th)

Both Vega's *combined* have only 0.28% of the market after 24 months

The 1660 has 0.40% (5 months)
The 1660 Ti has 0.63% (6 months)
The 2060 has 1.03% (7 months)
The 2070 has 1.20% (12 months)
The 2080 has 0.75% (11 months)
The 2080 Ti has 0.41% (11 months)

Since March, the 580s market share has gone up 0.28%
Since March, the 570s market share has gone up 0.36%
Since March, the 1660 Tis market share has gone up 0.63%
Since March the 2070s market share has gone up 0.55%
Since May, the 1660s market share has gone up 0.40%
Since May, the 2080 Tis market share has gone up 0.40%
Since May, the 2060s market share has gone up 0.76%

Yes, AMD has greatly reduced the performance deficit in several market niche's ... but the "silver medal" doesn't get ya picture on a Wheaties box. They need to get a win ... and they can't hurt themselves launching a Radeon VII in February for (still proced at $700) runs neck and neck with the 2070 ($425) and then come out with $430 - $450 AIB 5700 XT cards in June are nipping at its heels. However, having done what they've done efficiency wise with the latest launch, I think the next launch might just be sonmething woirth crowing about.

 

[Space Lynx]

You do realize that since 200, the average price of the top card ... xx80 or equivalent has been $700 in 2017 dollars ... that would be $724 in 2019 dollars ... Today, the best performing 2080 that TPU tested can be had for $659 and that includes the 10 or 25% tariff whatever was in effect when it shipped. The 2080 Ti is in a unique position as a) normally they don't ship till 10 months or so after the 2080 and b) right now nvidi is having trouble keeping production in line with demand. Until folks stop buying them, I don't see them cutting proces.



With both cards overclocked, the AIB 5700XT can't keep up with the AIB 2070 using TPUs 20+ game test suite... nor do they catch the 20780 in noise or temps... get very close but not equal. performance remains about 5% higher for the 2070.

I don't see nVidia sweating until their market share slips.... right now there are more 1060s in use than all AMD cards combined.

AMD doesn't have a card in the Top 10
AMD has just 2 cards in the Top 25 (11th and 25th)

Both Vega's *combined* have only 0.28% of the market after 24 months

The 1660 has 0.40% (5 months)
The 1660 Ti has 0.63% (6 months)
The 2060 has 1.03% (7 months)
The 2070 has 1.20% (12 months)
The 2080 has 0.75% (11 months)
The 2080 Ti has 0.41% (11 months)

Since March, the 580s market share has gone up 0.28%
Since March, the 570s market share has gone up 0.36%
Since March, the 1660 Tis market share has gone up 0.63%
Since March the 2070s market share has gone up 0.55%
Since May, the 1660s market share has gone up 0.40%
Since May, the 2080 Tis market share has gone up 0.40%
Since May, the 2060s market share has gone up 0.76%

Yes, AMD has greatly reduced the performance deficit in several market niche's ... but the "silver medal" doesn't get ya picture on a Wheaties box. They need to get a win ... and they can't hurt themselves launching a Radeon VII in February for (still proced at $700) runs neck and neck with the 2070 ($425) and then come out with $430 - $450 AIB 5700 XT cards in June are nipping at its heels. However, having done what they've done efficiency wise with the latest launch, I think the next launch might just be sonmething woirth crowing about.

homie you are talking percentages, which in this case can be misleading. I saw several games at 1440p modern AAA (not all, but not just one either) that the 5700 XT is only about 10 fps behind at stock then a rtx 2080 super. the only game that nvidia dominates i could find is witcher 3 where it has 30 fps lead at 1440p. im not looking at 1080p benchmark, as thats not my personal use case.

 

[TheoneandonlyMrK]

You do realize that since 200, the average price of the top card ... xx80 or equivalent has been $700 in 2017 dollars ... that would be $724 in 2019 dollars ... Today, the best performing 2080 that TPU tested can be had for $659 and that includes the 10 or 25% tariff whatever was in effect when it shipped. The 2080 Ti is in a unique position as a) normally they don't ship till 10 months or so after the 2080 and b) right now nvidi is having trouble keeping production in line with demand. Until folks stop buying them, I don't see them cutting proces.



With both cards overclocked, the AIB 5700XT can't keep up with the AIB 2070 using TPUs 20+ game test suite... nor do they catch the 20780 in noise or temps... get very close but not equal. performance remains about 5% higher for the 2070.

I don't see nVidia sweating until their market share slips.... right now there are more 1060s in use than all AMD cards combined.

AMD doesn't have a card in the Top 10
AMD has just 2 cards in the Top 25 (11th and 25th)

Both Vega's *combined* have only 0.28% of the market after 24 months

The 1660 has 0.40% (5 months)
The 1660 Ti has 0.63% (6 months)
The 2060 has 1.03% (7 months)
The 2070 has 1.20% (12 months)
The 2080 has 0.75% (11 months)
The 2080 Ti has 0.41% (11 months)

Since March, the 580s market share has gone up 0.28%
Since March, the 570s market share has gone up 0.36%
Since March, the 1660 Tis market share has gone up 0.63%
Since March the 2070s market share has gone up 0.55%
Since May, the 1660s market share has gone up 0.40%
Since May, the 2080 Tis market share has gone up 0.40%
Since May, the 2060s market share has gone up 0.76%

Yes, AMD has greatly reduced the performance deficit in several market niche's ... but the "silver medal" doesn't get ya picture on a Wheaties box. They need to get a win ... and they can't hurt themselves launching a Radeon VII in February for (still proced at $700) runs neck and neck with the 2070 ($425) and then come out with $430 - $450 AIB 5700 XT cards in June are nipping at its heels. However, having done what they've done efficiency wise with the latest launch, I think the next launch might just be sonmething woirth crowing about.

If you are going to use the steam survey as the Holy grail , at least point out that's where your getting your stats from.
That way ,the educated amongst us can discount your statement without comment , as is your implications that this is absolute fact and generally accepted as the way is defective, Many argue against such definitely arguable statistics that point to many using intel to game on, a feat I've yet to witness Anybody doing(though I except my first world perspective isn't the only one).

And you realise that 2080 probably got reduced when the supers demonstrated perfectly that nvidia Knew they were gouging and went for reflashing cards to downgrade them to supers so they might actually sell them at a price closer to what they are worth for binned slightly defective chips.

 

[Space Lynx]

If you are going to use the steam survey as the Holy grail , at least point out that's where your getting your stats from.
That way ,the educated amongst us can discount your statement without comment , as is your implications that this is absolute fact and generally accepted as the way is defective, Many argue against such definitely arguable statistics that point to many using intel to game on, a feat I've yet to witness Anybody doing(though I except my first world perspective isn't the only one).

And you realise that 2080 probably got reduced when the supers demonstrated perfectly that nvidia Knew they were gouging and went for reflashing cards to downgrade them to supers so they might actually sell them at a price closer to what they are worth for binned slightly defective chips.

as far as marketing tactics go regarding the super, we can all agree I think AMD, Intel, and nvidia are in the same boat. they hire corporate shills for the marketing department to do the best to predict the markets and maximize profits, and fair enough, I don't hold that against any of the three companies (all 3 have plenty of examples we could hate on them for misleading with twisty words...)

there are certain things we can look to though, patterns that do matter. right now I am impressed my Lisa Su and her ability to have rallied a failing company. morale on the battlefield is perhaps the most important thing even if outnumbered, it similar in corporations. if I worked for Intel, I would not give 110%, because Intel is the status quo, the steady salary, the come home to your fenced in yard. AMD I would give 110% if I worked there while working in a single bedroom apartment, a message of privacy, security, risks of the future if we let monopolies take over, open source king, Lisa Su being an engineering doctorate herself and not a corporate shill, and so on and so forth.

I would however, ask Lisa Su to hire more engineers for the graphics driver side of things... it's so close... but no cigar. Maybe the rx 5800 XT will change my outlook, time to be patient one more time.

 

[bug]

as far as marketing tactics go regarding the super, we can all agree I think AMD, Intel, and nvidia are in the same boat. they hire corporate shills for the marketing department to do the best to predict the markets and maximize profits, and fair enough, I don't hold that against any of the three companies (all 3 have plenty of examples we could hate on them for misleading with twisty words...)

there are certain things we can look to though, patterns that do matter. right now I am impressed my Lisa Su and her ability to have rallied a failing company. morale on the battlefield is perhaps the most important thing even if outnumbered, it similar in corporations. if I worked for Intel, I would not give 110%, because Intel is the status quo, the steady salary, the come home to your fenced in yard. AMD I would give 110% if I worked there while working in a single bedroom apartment, a message of privacy, security, risks of the future if we let monopolies take over, open source king, Lisa Su being an engineering doctorate herself and not a corporate shill, and so on and so forth.

I would however, ask Lisa Su to hire more engineers for the graphics driver side of things... it's so close... but no cigar. Maybe the rx 5800 XT will change my outlook, time to be patient one more time.

Like you have noted, AMD is the underdog in nearly everything it does. If I had to guess, they simply had to focus their resources and they went for the desktop first and the server second. Whether their third goal is graphics or mobile, remains to be seen. So my guess is that Ms Su didn't overlook the graphics division, but instead decided it's not what's going to put AMD back on the map and left it for later. Of course, next year Intel will be in the GPU market, too and if they're any good, AMD's fight will be that much harder. Then again, in the words of von Moltke: "no battle plan survives the encounter with the enemy"

 

[Space Lynx]

Like you have noted, AMD is the underdog in nearly everything it does. If I had to guess, they simply had to focus their resources and they went for the desktop first and the server second. Whether their third goal is graphics or mobile, remains to be seen. So my guess is that Ms Su didn't overlook the graphics division, but instead decided it's not what's going to put AMD back on the map and left it for later. Of course, next year Intel will be in the GPU market, too and if they're any good, AMD's fight will be that much harder. Then again, in the words of von Moltke: "no battle plan survives the encounter with the enemy"

fps wise they are in the market again for gpu's imo at 1440p especially. the issue I have is with drivers... and this weird love thing they have for blower style fans still lol

 

[Vayra86]

This is good, market still working as it should.

Never despair, always be patient. Time is on our side, as always, it's not our paycheck after all

Nvidia has made the mistake of releasing a gen that is only favorable to those who didn't buy into their last price hike for Pascal on the 1080 and upwards. And then introduced a feature that can only be enjoyed on the cards that aren't interesting. Turing is really only worth it if you've been sitting at GTX 1060~1070 or lower performance. So really, both GPU vendors are serving the low and midrange this round. Even with Super cards, the best offer is a 1080ti equivalent and the rest can safely be ignored.

 

[Renald]

You do realize that since 200, the average price of the top card ... xx80 or equivalent has been $700 in 2017 dollars ... that would be $724 in 2019 dollars ... Today, the best performing 2080 that TPU tested can be had for $659 and that includes the 10 or 25% tariff whatever was in effect when it shipped. The 2080 Ti is in a unique position as a) normally they don't ship till 10 months or so after the 2080 and b) right now nvidi is having trouble keeping production in line with demand. Until folks stop buying them, I don't see them cutting proces.



With both cards overclocked, the AIB 5700XT can't keep up with the AIB 2070 using TPUs 20+ game test suite... nor do they catch the 20780 in noise or temps... get very close but not equal. performance remains about 5% higher for the 2070.

I don't see nVidia sweating until their market share slips.... right now there are more 1060s in use than all AMD cards combined.

AMD doesn't have a card in the Top 10
AMD has just 2 cards in the Top 25 (11th and 25th)

Both Vega's *combined* have only 0.28% of the market after 24 months

The 1660 has 0.40% (5 months)
The 1660 Ti has 0.63% (6 months)
The 2060 has 1.03% (7 months)
The 2070 has 1.20% (12 months)
The 2080 has 0.75% (11 months)
The 2080 Ti has 0.41% (11 months)

Since March, the 580s market share has gone up 0.28%
Since March, the 570s market share has gone up 0.36%
Since March, the 1660 Tis market share has gone up 0.63%
Since March the 2070s market share has gone up 0.55%
Since May, the 1660s market share has gone up 0.40%
Since May, the 2080 Tis market share has gone up 0.40%
Since May, the 2060s market share has gone up 0.76%

Yes, AMD has greatly reduced the performance deficit in several market niche's ... but the "silver medal" doesn't get ya picture on a Wheaties box. They need to get a win ... and they can't hurt themselves launching a Radeon VII in February for (still proced at $700) runs neck and neck with the 2070 ($425) and then come out with $430 - $450 AIB 5700 XT cards in June are nipping at its heels. However, having done what they've done efficiency wise with the latest launch, I think the next launch might just be sonmething woirth crowing about.

numbers, numbers, numbers without any context nor sens...

If you want to compare things, compare what's comparable. It's like comparing a multi-socket Xeon with an i7.
Thus, if you look at numbers, you'll see that Nvidia shifted the whole thing :

Old gen	New Gen (avg +15% in perf)
1060 =>300$	1660Ti (alias the 2050 they don't want to create) =>280$
1070 =>380$	2060 =>340$
1080 =>500$	2070 / 2060 SUPER (nearly) =>400$
1080 Ti =>700$	2080 / 2070 SUPER (a bit short, but still, for 200$ less) =>500$ (600$ for 2080)

Now you can compare prices ! And oh surprise, the 1080Ti successor is at 500$ MSRP ! You can even use 600$ if you're picky.

Now they match AMD perf/price on these cards (2060 S /2070 S/2080 S).
Yes there previous prices was awful, but not the "SUPER" cut on prices. I bought my 2070 for 389€ less than a week ago. and not 500$ as it's original price was.

Still, the 2070 SUPER/2080 is @600€ around, for 10% more FPS (any resolution), so for +30% in price, it's not worth it even if it's still Nvidia pricing. It always has been on very high-end cards.

Example : https://www.techpowerup.com/gpu-specs/geforce-rtx-2060.c3310

Look the difference between cards.
1060 => 2060 +50% in performance
1070 => 2070 +33% in performance
1080 => 2080 +33% in performance

So I was gentle with my 15%. remember there's no shrink, no new design, nothing. Just more silicon and higher clocks.
1060 = 4.4B transistors
2060 = 11B transistors ...

You can't expect, at the same node, a GPU twice bigger, at the price.