PC graphics card giant Nvidia has reported massive year-on-year slowing of growth, with revenue down over $1 billion compared with the same period last year.
The company pulled in $2.22 billion in revenue during the quarter ending April 28 2019, compared with $3.21 billion during Q1 of 2018. The earnings almost match the $2.21 the firm brought in during the previous quarter.
In terms of income, that represents $394 million, which is a sharp drop off from the $1.24 billion profit brought in during the same three months of 2018.
The company speaks of a “pause” from its customer base, but says backed up inventory is starting to ease and that orders from PC makers are starting to pick up again. Shares were up 6% because the earnings report beat Wall Street expectations.
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“Nvidia is back on an upward trajectory,” said Jensen Huang, founder and CEO of Nvidi. “We’ve returned to growth in gaming, with nearly 100 new GeForce Max-Q laptops shipping. And Nvidia RTX has gained broad industry support, making ray tracing the standard for next-generation gaming.
“Despite the near-term pause in demand from hyperscale customers, the application of AI continues to accelerate. AI adoption is accelerating in the world’s largest industries, moving beyond the cloud to the edge where AI processing has to be instantaneous. We’re excited about our pending acquisition of Mellanox, which will help us drive data centre architecture for high performance computing and AI from the cloud to the edge,” he said in a press release.
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The news comes amid reports Nvidia plans to introduce new GeForce RTX cards with faster RAM, in order to combat the emerging AMD Navi GPUs. According to a report from RedGamingTech this week, the RTX cards will receive a boost from 14Gbps to 16Gbps. The report also speculates that the clock speed of the GPUs will also be boosted in the near future.