- Revenue is expected to be $4.80 billion, plus or minus 2 percent.
- GAAP and non-GAAP gross margins are expected to be 62.8 percent and 65.5 percent, respectively, plus or minus 50 basis points.
- GAAP and non-GAAP operating expenses are expected to be approximately $1.64 billion and $1.18 billion, respectively.
- GAAP and non-GAAP other income and expense are both expected to be an expense of approximately $55 million.
- GAAP and non-GAAP tax rates are both expected to be 8 percent, plus or minus 1 percent, excluding any discrete items. GAAP discrete items include excess tax benefits or deficiencies related to stock-based compensation, which are expected to generate variability on a quarter-by-quarter basis.
Highlights
During the third quarter, NVIDIA announced a definitive agreement to acquire Arm Limited from SoftBank Capital Limited and SVF Holdco (UK) Limited in a transaction valued at $40 billion. The transaction will combine NVIDIA’s leading AI computing platform with Arm’s vast ecosystem to create the premier computing company for the age of AI. The transaction ― which is expected to be immediately accretive to NVIDIA’s non-GAAP gross margin and non-GAAP earnings per share ― is expected to close in the first quarter of calendar 2022.
NVIDIA also announced plans to build a world-class AI lab in Cambridge , England ― including a powerful AI supercomputer based on NVIDIA and Arm technology ― and provide research fellowships and partnerships with local institutions and AI training courses. Separately, it plans to build Cambridge-1, the U.K.’s most powerful AI supercomputer, based on an NVIDIA DGX SuperPOD™ system and designed for AI research in healthcare and drug discovery.
NVIDIA also achieved progress since its previous earnings announcement in these areas:
Data Center
- Third-quarter revenue was a record $1.90 billion, up 8 percent from the previous quarter and up 162 percent from a year earlier.
- Shared news that A mazon Web Services and Oracle Cloud Infrastructure announced general availability of cloud computing instances based on the NVIDIA A100™ GPU, following Google Cloud Platform and Microsoft Azure.
- Announced the NVIDIA DGX SuperPOD Solution for Enterprise ― the world’s first turnkey AI infrastructure ― which is expected to be installed by yearend in Korea, the U.K., India and Sweden.
- Announced that five supercomputers backed by EuroHPC ― including “Leonardo,” the world’s fastest AI supercomputer built by the Italian inter-university consortium CINECA ― will use NVIDIA’s data center accelerators or networking.
- Introduced the NVIDIA BlueField-2 DPU (data processing unit) ― supported by NVIDIA DOCA™, a novel data-center-infrastructure-on-a-chip architecture ― to bring breakthrough networking, storage and security performance to every data center.
- Announced a broad partnership with VMware to create an end-to-end enterprise platform for AI and a new architecture for data center, cloud and edge using NVIDIA DPUs, benefiting 300,000-plus VMware customers.
- Unveiled NVIDIA Maxine™, an AI video-streaming platform that enhances streaming quality and offers such AI-powered features as gaze correction, super-resolution, noise cancellation and face relighting.
- Introduced the NVIDIA RTX ™ A6000 and NVIDIA A40 ™ GPUs, built on the NVIDIA Ampere architecture and featuring new RT Cores, Tensor Cores and CUDA® cores.
- Extended its lead on MLPerf performance benchmarks for inference, winning every test across all six application areas for data center and edge computing systems.
- Announced a partnership with GSK to integrate computing platforms for imaging, genomics and AI into the drug and vaccine discovery process.
- Introduced at SC20, three powerful advances in AI technology: the
NVIDIA® A100 80GB GPU, powering the
NVIDIA HGX™ AI supercomputing platform with twice the memory of its predecessor; the
NVIDIA DGX Station™ A100, the world’s only petascale workgroup server, for machine learning and data science workloads; and the next generation of
NVIDIA
®
Mellanox
®
InfiniBand, for the fastest networking performance.
Gaming
- Third-quarter revenue was a record $2.27 billion, up 37 percent from the previous quarter and up 37 percent from a year earlier.
- Unveiled the GeForce RTX ® 30 Series GPUs, powered by the NVIDIA Ampere architecture and the second generation of RTX, with up to 2x the performance of the previous Turing-based generation.
- Announced that Fortnite ― the world’s most popular video game ― will support NVIDIA RTX real-time ray tracing and DLSS AI super-resolution, joining more than two dozen other titles including Cyberpunk 2077, Call of Duty: Black Ops and Watch Dogs: Legion.
- Introduced NVIDIA Reflex™, a suite of technologies that improves reaction time in games by reducing system latency, which is available in Fortnite, Valorant, Call of Duty: Warzone and Apex Legends, among other titles.
- Unveiled
NVIDIA Broadcast™, a plugin that enhances microphone, speaker and webcam quality with RTX-accelerated AI effects.
Professional Visualization
- Third-quarter revenue was $236 million, up 16 percent from the previous quarter and down 27 percent from a year earlier.
- Brought to open beta NVIDIA Omniverse™, the world’s first NVIDIA RTX-based 3D simulation and collaboration platform.
- Announced NVIDIA Omniverse Machinima™, enabling creators with video game assets animated by NVIDIA AI technologies.
- Collaborated with Adobe to bring GPU-accelerated neural filters to Adobe Photoshop AI-powered tools.
Auto motive
- Third-quarter revenue was $125 million, up 13 percent from the previous quarter and down 23 percent from a year earlier.
- Announced with Mercedes-Benz that NVIDIA is powering the next-generation MBUX AI cockpit system, to be featured first in the new S-class sedan, with such features as an augmented reality heads-up display, AI voice assistant and interactive graphics.
- Announced with Hyundai Motor Group that the Korean automaker’s entire lineup of Hyundai, Kia and Genesis models will come standard with NVIDIA DRIVE™ in-vehicle infotainment systems, starting in 2022.
- Announced that China’s Li Auto will develop its next generation of electric vehicles using NVIDIA DRIVE AGX Orin™, a software-defined platform for autonomous vehicles.
CFO
Commentary
Commentary on the quarter by Colette Kress, NVIDIA’s executive vice president and chief financial officer, is available at
https://investor.nvidia.com/ .
