Nvidia CEO Jensen Huang said in an analyst call that the graphics and AI chip company is “expecting a really large second half for gaming.”
Huang said that the pandemic has accelerated interest in gaming, making it the No. 1 form of entertainment around the world. On top of that, he said gaming is benefiting from having so many different way to play.
“The number of different ways you can game has really exploded,” Huang said.
He noted that the Nintendo Switch, for which Nvidia supplies chips, is about to top the Super Nintendo as the No. 1 Nintendo platform of all time. He also noted how gaming is becoming more social, with people hanging out in Fortnite to watch concerts in addition to playing. He noted how people are streaming gameplay and building new broadcast networks on platforms such as Twitch and YouTube.
And while Nvidia doesn’t have chips in the upcoming game consoles, he said he expects strong sales of the Sony PlayStation 5 and the Microsoft Xbox Series X.
“It’s going to be the most amazing season ever,” he said.
He spoke on a conference call after Santa Clara, California-based Nvidia posted revenues of $3.87 billion for the second fiscal quarter ended July 26, up 50% from a year earlier. The revenues beat expectations, and non-GAAP earnings per share of $2.18 also trounced expectations as gaming hardware and AI remained in high demand during the pandemic.
Nvidia makes graphics processing units (GPUs) that can be used for games, AI, and datacenter computing. While many businesses have been hit hard by the pandemic, Nvidia has seen a boost in those areas.
Gaming revenues in the second quarter ended July 26 were $1.65 billion, up 26% from a year ago.
Back in April, Nvidia launched its Ampere-based A100 GPU, an enormous AI chip with 54 billion transistors and a design based on a new generation of AI technology. Nvidia is expected to unveil its high-end desktop GPUs based on Ampere at its event scheduled for September 1.