Strong growth in data center technology is helping chip group Nvidia offset the decline in its traditional graphics card business. In the past quarter, turnover fell less than analysts had expected and the share temporarily rose by three percent after the announcement of the figures. Yet there were significant declines.
Revenue fell 17 percent year over year to $5.93 billion in the third fiscal quarter ended October. Profit fell by 72 percent to 680 million dollars (654.3 million euros).
Data centers are booming, graphics cards are weakening
The development of the two pillars of Nvidia went in opposite directions. Data center operations grew 31 percent to $3.83 billion. Although sales were held back by the US halt on exports of some chips to China, Nvidia intercepted this with the delivery of other models.
However, graphics card sales fell 51 percent to $1.57 billion. On the one hand, the decisive factor was weak PC sales. On the other hand, a change in the cryptocurrency Ethereum played a role. Graphics cards then became less useful for their production.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
