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Nvidia announced starting time quarter results for its fiscal year 2017 yesterday, and the business firm's results were first-class — particularly in a marketplace where companies like AMD and Intel take been taking a hammering. Kickoff-quarter revenue was upwardly thirteen% to $i.3 billion, with strong gains in gaming, data centers, and the automotive marketplace.

The slide below breaks down Nvidia's revenue in 2 different ways. Reportable segment acquirement reflects Nvidia'due south chosen method of grouping its businesses (Tegra, GPU, Other). Acquirement by marketplace platform provides additional color into how each individual area of the company is performing. I does not map cleanly to the other, just information technology'southward worth because both data sets.

NV-Revenue

These two charts suggest that the bulk of Nvidia's growth is linked to its stiff performance in gaming, data centers, and automotive sales. The drib off in the OEM and IP market was most likely caused by declines in Nvidia'due south original Tegra mobile business and offset by a meaning uptick in need for Nvidia's automotive designs. Nvidia logged a 63% increase in information center acquirement, driven by its efforts to position itself at the center of both the driverless machine initiative and deep learning networks. Both of these efforts have been front and center during a number of recent visitor demos and presentations.

Gaming also saw strong gains twelvemonth-on-yr, and Nvidia implied this was due to increased sales book in all areas rather than increased ASPs. The 8% quarterly decline is in line with seasonal projections, which ways Nvidia has probably taken market share from AMD over the by 12 months. The company'south recent GTX 1080 and 1070 announcements have gear up the phase for an aggressive move to have over the high-end of the market place. AMD countered the GTX 980 Ti with the Fury family in 2015, but Polaris isn't a high-end uber-GPU and Nvidia has obviously planned to sweep both the loftier-end market in full general and the VR space, specifically.

AMD hasn't formally appear Polaris positioning or functioning however, but the rumor manufactory suggests it'south an extremely stiff competitor in much less expensive markets that found the actual bulk of the GPU space. For all the ink lavished on loftier-end cards, very few people actually buy a $600 GPU. About of the market place is in the $150-$250 space, and if AMD launches a strong midrange function, it could seize leadership in that area. We don't know yet how all these variables will play out.

Nvidia's long-term success

It's interesting to expect at where Nvidia is now as opposed to what conventional wisdom predicted roughly eight years ago. Back then, AMD and Intel both had plans to combine GPUs with CPUs to create products that would likely impale the low-end GPU markets. By and large this happened, which is why both AMD and Nvidia focus on the $100+ space these days. The cards sold below that price point tend to exist older hardware from previous depression-end generations.

Nvidia poured enormous resources into Tegra to win early infinite in mobile — Tegra ii was 1 of the most popular smartphone and tablet processors in the early dual-core days — before pivoting the entire segment towards automotive designs. Using GeForce cards for deep learning and HPC work is another market Nvidia has largely dominated. Until quite recently, AMD didn't seriously compete for these spaces and the company has a long way to become to ramp upwardly its resource to match Team Green.

The flip side to this is that Nvidia's ain Project Denver CPU cadre hasn't amounted to much in the market to date, and Nvidia's efforts to create a comprehensive SoC platform with Icera's modem technology also failed. Like Microsoft and Intel, Nvidia has had difficulty breaking out of its core GPU market place — but one could debate that it's besides spent less coin chasing alternatives that haven't panned out. Microsoft and Intel take both pivoted their business concern strategies and created new products, but both also threw huge amounts of money and mobile for a number of years.

Overall, the company is well positioned for FY 2017 (calendar 2016). We'll see if and how that changes when Polaris launches this summer. And but to exist articulate: Knowledgeable sources ET has spoken to take confirmed that Polaris is on-track for a mid-yr launch. Rumors that AMD has pulled Vega in for an Oct launch are just that — rumors.