PC graphics chip maker Nvidia is expanding rapidly in visual computing chips for data centers, PC gaming, automobiles, and cloud gaming. But it isn’t doing so hot in mobile devices.
The company reiterated those points today in a conference call with analysts after Nvidia reported better-than-expected earnings and revenues in the fourth fiscal quarter ended Jan. 25. Nvidia accomplished that even though its Tegra mobile processors are no longer growing in the core market of smartphones and tablets.
“Our gaming business is very strong, and we have some exciting things to tell you very soon,” said Nvidia chief executive Jen-Hsun Huang in a conference call with analysts. “Our Tegra business model is about autos and gaming.”
Tegra revenue was down 15 percent in the quarter from a year ago because Nvidia hasn’t been winning new design wins for these processors, which have outstanding graphics performance but run hotter than other chips from rivals like Qualcomm.
But Nvidia’s revenues grew because its core business of selling PC GeForce chips was up 13 percent from a year ago, and chip revenues for gaming laptops and desktops in particular was up 38 percent.
Nvidia has shifted to put less emphasis for Tegra in automotive and gaming devices. Huang introduced a new chip, the Tegra X1, for two different car computers at the recent 2015 International CES tech trade show in January. One computer could drive entertainment and dashboard tech in the car, while the other enables car navigation.
“We believe they will pave the path for the self-driving car,” Huang said. “Today, a car is about 10 percent software. In the future, it will be 80 percent software. And I think that is right. I think that is where we can add an enormous amount of value.”
Even with the retreat from mobile processors, Nvidia was bullish. Gaming is a $70 billion market worldwide, Huang said. Mobile cloud is going to be a big deal, but no gaming architecture serves the mobile cloud right now, he said.
“That’s what Shield [Nvidia’s own gaming tablet] is all about,” he said.
Nvidia recently launched GeForce PC graphics chips for high-end and mid-range gaming computers, taking advantage of a new Maxwell architecture.
In the call, Nvidia said its Grid cloud computing and enterprise virtualization platform is being tested by more than 300 companies, from Airbus to Lockheed Martin. It also said its Quadro workstation processors were used to make the special effects for every one of the nominees for the Best Special Effects Academy Award.
Nvidia said that 7.5 million chips have been shipped into cars.