The company’s revenue is up from the previous quarter.
Last week, Nvidia reported its fiscal 2020 second-quarter earnings results. The company has been one of the worst-performing chip stocks of the year.
Nvidia has been dragged down by trade war concerns and an overabundance of inventory from the crypto-mining crash. However, this worked in the company’s favor since Wall Street’s expectations were pretty low going into the earnings report.
The results themselves weren’t that great in many ways. The company’s revenue and earnings fell year-over-year. But Nvidia still managed to beat analyst forecasts and make modest gains from the previous quarter.
An overview of the earnings report
During the second quarter, the company’s revenue fell 17% year-over-year to reach $2.6 billion. However, forecasts had the company’s revenue falling by 18% so this was still better than expected.
Nvidia’s two biggest revenue drivers are gaming GPUs and its data centers. Both of these segments are still down from a year earlier but made marginal improvements from the previous quarter.
The company’s gaming GPU segment grew by 24% from the previous quarter. This increase was largely due to the company’s launch of its GeForce Now cloud gaming platform. Nvidia also saw its data center revenue increase by 3%.
And Nvidia is still working out the details of its $6.9 billion acquisition of Mellanox. The company received regulatory approval in the U.S. and is working out the details with regulators in Europe and China. The company expects to have the deal completed by the end of the year.
What’s next for Nvidia?
The company didn’t provide any full-year guidance, mostly due to the uncertainty surrounding the Mellanox acquisition. But Nvidia did provide third-quarter revenue guidance for investors.
The company expects third-quarter revenue to reach $2.9 billion. And the company expects its adjusted earnings to come to $1.23 per share. These figures are still down from a year earlier but are up from the previous quarter.
All in all, it wasn’t the best earnings report and Nvidia still has a long way to go. But the company made improvements and showed it is starting to bounce back after a difficult year. Investors responded favorably to the news and its shares rose more than 7% as a result.