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Nvidia announced first quarter results for its fiscal year 2022 yesterday, and the business firm'southward results were first-class — particularly in a market where companies like AMD and Intel have been taking a hammering. Kickoff-quarter acquirement was up 13% to $1.3 billion, with strong gains in gaming, data centers, and the automotive market.

The slide below breaks down Nvidia's revenue in 2 different ways. Reportable segment revenue reflects Nvidia's called method of grouping its businesses (Tegra, GPU, Other). Revenue by market platform provides additional colour into how each individual surface area of the company is performing. 1 does not map cleanly to the other, only it'southward worth considering both information sets.

NV-Revenue

These two charts suggest that the majority of Nvidia's growth is linked to its strong performance in gaming, data centers, and automotive sales. The driblet off in the OEM and IP market place was virtually probable acquired by declines in Nvidia's original Tegra mobile business and offset by a meaning uptick in demand for Nvidia's automotive designs. Nvidia logged a 63% increase in data center revenue, driven past its efforts to position itself at the center of both the driverless car initiative and deep learning networks. Both of these efforts have been front end and eye during a number of recent company demos and presentations.

Gaming also saw stiff gains year-on-yr, and Nvidia implied this was due to increased sales book in all areas rather than increased ASPs. The eight% quarterly decline is in line with seasonal projections, which means Nvidia has probably taken market share from AMD over the past 12 months. The company's contempo GTX 1080 and 1070 announcements have set up the stage for an aggressive move to have over the high-end of the market. AMD countered the GTX 980 Ti with the Fury family in 2022, but Polaris isn't a high-terminate uber-GPU and Nvidia has obviously planned to sweep both the loftier-end market in general and the VR infinite, specifically.

AMD hasn't formally announced Polaris positioning or performance nonetheless, but the rumor mill suggests it'due south an extremely potent competitor in much less expensive markets that constitute the actual majority of the GPU space. For all the ink lavished on loftier-end cards, very few people really buy a $600 GPU. Most of the market is in the $150-$250 space, and if AMD launches a stiff midrange part, it could seize leadership in that area. We don't know yet how all these variables will play out.

Nvidia'due south long-term success

It's interesting to look at where Nvidia is now as opposed to what conventional wisdom predicted roughly eight years ago. Back and then, AMD and Intel both had plans to combine GPUs with CPUs to create products that would likely kill the low-cease GPU markets. By and big this happened, which is why both AMD and Nvidia focus on the $100+ space these days. The cards sold below that price signal tend to be older hardware from previous depression-stop generations.

Nvidia poured enormous resources into Tegra to win early on space in mobile — Tegra 2 was one of the nigh pop smartphone and tablet processors in the early on dual-core days — before pivoting the unabridged segment towards automotive designs. Using GeForce cards for deep learning and HPC piece of work is some other market Nvidia has largely dominated. Until quite recently, AMD didn't seriously compete for these spaces and the company has a long way to get to ramp upwardly its resources to match Team Greenish.

The flip side to this is that Nvidia's own Project Denver CPU cadre hasn't amounted to much in the market to date, and Nvidia'due south efforts to create a comprehensive SoC platform with Icera's modem technology too failed. Like Microsoft and Intel, Nvidia has had difficulty breaking out of its core GPU market — but i could argue that it'southward besides spent less coin chasing alternatives that oasis't panned out. Microsoft and Intel have both pivoted their business strategies and created new products, but both as well threw huge amounts of money and mobile for a number of years.

Overall, the company is well positioned for FY 2022 (agenda 2022). We'll see if and how that changes when Polaris launches this summer. And just to exist articulate: Knowledgeable sources ET has spoken to accept confirmed that Polaris is on-rail for a mid-year launch. Rumors that AMD has pulled Vega in for an Oct launch are just that — rumors.