CHIP DESIGNER Nvidia announced a nearly 13 percent increase in revenue and a 17 percent increase in profits for its fiscal third quarter, citing its Kepler GPUs as the reason for its success.
Nvidia's Kepler architecture has trickled down to the majority of the firm's products including the high volume mainstream market in the past quarter. Now the company is reaping the rewards with third quarter revenue increasing by 12.9 percent to $1.2bn while profits increased by 17.3 percent to $209.1m.
Nvidia CEO and president Jen-Hsun Huang said, "Investments in our new growth strategies paid off this quarter in record revenues and margins. Kepler GPUs are winning across the special-purpose PC markets we serve, from gaming to design to supercomputing. And Tegra is powering some of the most innovative tablets, phones and cars in the market."
Despite Huang talking up the firm's Kepler GPUs as the reason for its recent success, Nvidia's long term upturn has been due to a branching into new markets such as high performance computing (HPC) through its Tesla accelerator range and more importantly it's ARM based system-on-chip (SoC) business through Tegra.
With Nvidia's Tegra powering Asus' Google-branded Nexus 7 tablet, the company can claim to be in one of the most important Android devices of 2012. The firm faces stiffer competition in the HPC market, as Intel is readying its Xeon Phi accelerator card that is expected to be in products launched at next week's International Supercomputing Conference.
Nevertheless, Nvidia's strategy execution and financials are in stark contrast to those of its traditional rival in the graphics market, AMD, which recently laid off over 1,000 employees and has had just one profitable quarter in the past year. µ
Plus the cost of ambition as moonshots eat into the coffers
Spoiler alert: it's probably VeriSign
Did we say cuts off? We meant traps them inside their own home