Santa Clara Strong growth in technology for data centers is helping the chip group Nvidia to offset declines in its traditional graphics card business. In the past quarter, sales therefore fell less than analysts expected, and the share temporarily rose by three percent in after-hours trading.
However, the declines were still significant. Revenue fell 17 percent year-on-year to $5.93 billion in the third fiscal quarter ended October. Profits fell by 72 percent to 680 million dollars (654.3 million euros).
The development of the two pillars of Nvidia ran in opposite directions. Data center business grew 31 percent to $3.83 billion. Although sales were slowed down by the US stop on the export of some chips to China, Nvidia intercepted this with the delivery of other models.
In the case of graphics cards, however, there was a drop in sales of 51 percent to 1.57 billion dollars. On the one hand, the decisive factor was the weak PC sales. On the other hand, a change in the cryptocurrency Ethereum played a role. Graphics cards then became less useful for their creation – and in some markets many users sold them afterwards. This has depressed demand for new graphics cards, especially in the lower price range.
Tagus Top-Jobs
Find the best jobs now and
be notified by email.
More: Intel is in the deepest crisis for decades – chip giant is shrinking and has to save