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Beating the street estimates, Nvidia has posted 16% rise in its earning for Q2 fiscal 2020 in comparison to the previous quarter.
California-based chip manufacturing giant Nvidia released its second-quarter results for fiscal 2020 on Thursday, August 15. Compared to the Q1, Nvidia has posted a 16% rise in its overall revenue which stands at $2.58 billion in Q2 ending July 28.
Popular for manufacturing cryptocurrency miners, Nvidia saw a major slowdown during the crypto winter of the last year. However, beating analysts’ expectations, Nvidia has outperformed during the Q2.
But if we are to see its year-over-year performance, Nvidia’s revenue dropped by 17%. During the fiscal 2019 last year, Nvidia’s revenue stood at $3.12 billion as the company then witnessed a strong demand for its GPUs from the cryptocurrency miners.
This year, the company has announced some developments in its GPU outputs. However, in addition, it also saw growth and profitability in its gaming business segment as well as the artificial intelligence business. But the company’s gaming business segment contributes a majority to the overall revenue. Jensen Huang, founder and CEO of NVIDIA, said:
“We achieved sequential growth across our platforms. 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,” added he.
Besides, the chip manufacturing giant has also announced: “cash dividend of $0.16 per share on September 20, 2019, to all shareholders of record on August 29, 2019”. With the current cash balance, the company is eyeing for the acquisition of Mellanox Technologies, Ltd. Post the acquisition, Nvidia is likely to repurchase the stock.
Developments in the Nvidia Inception Program
Nvidia also seems to be making crucial progress when it comes to some blockchain-related developments. In May 2019, Nvidia incorporated the blockchain-based platform Ammut Network in the Nvidia Inception Program.
The Nvidia Inception Program is basically an accelerator program which helps startups and companies to fast-track their business-related operations.
The Ammut platform is a problem solver that caters for machine learning, scientific calculations, computer graphics and other processing-heavy applications. Users can rent out computing power and use it to further their objectives.
In addition to it, Nvidia has also been engaged in a few controversies. Back in December 2018, Nvidia also faced a class-action lawsuit from the Schall Law firm. The complaint noted that Nvidia made “false and misleading statements to the market” and “touted its ability to monitor the cryptocurrency market and make rapid changes to its business as necessary.”