According to micro-blog news, on the 10th, Nvidia announced its first fiscal quarter revenue for the fiscal year 2019 as of April 29, 2018. Its operating revenue reached a record high of US$3.21 billion, a year-on-year increase of 66%, and an increase of 10% from the previous quarter. It is noteworthy that the quarterly OEM and IP operating revenue surged by 148% year-on-year, of which approximately 75% were related to digital currency mining. Nvidia expects second-quarter digital currency revenue to decrease by two-thirds from the previous quarter.
In addition, non-GAAP net profit increased by 141% year-on-year to US$1.285 billion, and net profit under GAAP increased by 145% YoY to US$1.244 billion. Non-GAAP and GAAP gross margin were 64.7% and 64.5%, respectively. This is Nvidia's 11th consecutive profit. A quarterly profit exceeded market expectations. Nvidia's second-quarter revenue is also expected to exceed market expectations. It is expected to be within ±2% of revenue of $3.1 billion, which is higher than market expectations of $2.95 billion.
In the first fiscal quarter of NVIDIA, revenue from OEM and IP business grew dramatically, which was a 115% increase from the previous quarter and a 148% year-on-year increase to US$387 million. Nvidia points out that there are US$289 million in revenue and encryption figures. Related to currency mining. This means that in the most robust growth of Nvidia's first quarter, the demand for digital currency mining contributed about 75% of business revenue.
This is Nvidia's first disclosure of mining-related business revenues, Nvidia CEO Huang Renxun said, digital currency miners purchased a large number of GPUs, driving prices soaring, and many game players can not even buy new GeForce chips.
Another major graphics card vendor, AMD, said in last month’s earnings report that digital currency mining revenue accounted for approximately 10% of overall revenue. AMD Q1’s camp revenue reached US$1.65 billion, which means that mining sales were approximately US$165 million. , well below NVIDIA's $289 million.
Although the mining business boom did not retreat, Nvidia apparently questioned the future of this market. For the second fiscal quarter, Nvidia executives expect mining business revenue will be only 1/3 of the first quarter .
Nvidia Mining's mining business was drastically reduced. In addition to the impact of bitcoin prices falling sharply and other fluctuations, another major factor was the impact from Bitland. Bitland has released the E3 mining machine E3 using its own ASIC chip last month. Shipments in the second quarter. Bitcoin ASIC chip developed by Bitland, mining efficiency is far better than GPU, ASIC has long been the mainstream of bitcoin mining. Before that, Ether has no proprietary ASIC chip, miners can only use GPU mining. Now the strong entry of Bit Continental will change this pattern and erode the market space that was originally dominated by NVIDIA and AMD's GPUs.
In addition, artificial intelligence ASIC chips such as Google TPU 2 are also weakening the GPU market for artificial intelligence.
The stock market has repeatedly reflected the market's expectations for Nvidia. After the financial report was released, Nvidia's stock price once fell, has fallen more than 1%, then recovered, rose more than 1%, refreshed historical highs, then turned lower, once falling over 3%. Since the beginning of this year, Nvidia's stock price has risen by more than 30%. Analysts believe that the stock price of Nvidia's shares fell afterwards because the company has not demonstrated a strong growth momentum beyond the digital currency.
Kevin Cassidy, an analyst with Stifel Nicolaus, an investment banking and brokerage firm, believes that Nvidia’s first-quarter revenue is higher than market expectations mainly due to digital currency-related income. For a stock with an estimated 40-fold P/E, this Performance is not good enough.