Data centre chip demand fuels Nvidia's 'record Q2 revenue'

The company continues its winning streak following the $6.9bn acquisition of Mellanox

Nvidia has forecast its 2021 second-quarter revenue above analysts’ estimates, powered by a surge in demand for data centre components amid the mass shift to remote working.

The company expects its Q2 revenue to be $3.65bn (£3bn), “plus or minus 2 percent”. According to IBES from financial market data provider Refinitiv, analysts were estimating this to be around $3.29bn (£2.70bn), as reported by Reuters.

Nvidia’s Q2 outlook takes into account the company’s $6.9bn acquisition of high-performance networking firm Mellanox, which was finalised last month. Weeks later, it was reported that Nvidia is also set to acquire networking software firm and former Mellanox collaborator Cumulus Networks, in a bid to further enhance its data centre credentials.

NVIDIA founder and CEO Jensen Huang said that the company has “had an excellent quarter”.

“The acquisition of Mellanox expands our cloud and data centre opportunity. We raised the bar for AI computing with the launch and shipment of our Ampere GPU," he said. "And our digital GTC conference attracted a record number of developers, highlighting the accelerating adoption of NVIDIA GPU computing."

Huang also added that Nvidia’s data centre “achieved a record and its first $1 billion quarter”, an 80% increase from the year before.

“NVIDIA is well-positioned to advance the most powerful technology forces of our time – cloud computing and AI,” he said.

Last month, the company announced that it would join the digital fight against coronavirus by providing the COVID-19 High-Performance Computing Consortium with its expertise in AI and large-scale computing optimisations.

During the course of the coronavirus pandemic, the unprecedented demand for chips, especially the ones used in data centres, has proven to make or break a tech company’s revenues.

In March, HPE reported that its year-on-year revenues for the previous quarter have declined by 8% due to difficulties in its compute business, led primarily by the continued shortage of Intel processors.

Featured Resources

Unleashing the power of AI initiatives with the right infrastructure

What key infrastructure requirements are needed to implement AI effectively?

Download now

Achieve today. Plan tomorrow. Making the hybrid multi-cloud journey

A Veritas webinar on implementing a hybrid multi-cloud strategy

Download now

A buyer’s guide for cloud-based phone solutions

Finding the right phone system for your modern business

Download now

The workers' experience report

How technology can spark motivation, enhance productivity and strengthen security

Download now

Most Popular

How to move Windows 10 from your old hard drive to SSD
operating systems

How to move Windows 10 from your old hard drive to SSD

21 Jan 2021
Hackers are actively exploiting three Apple iOS flaws

Hackers are actively exploiting three Apple iOS flaws

27 Jan 2021
16 ways to speed up your laptop

16 ways to speed up your laptop

26 Jan 2021