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What’s Really Happening in NVIDIA’s Professional Visualization Segment?

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Professional Visualization earnings

NVIDIA (NVDA) has been expanding its GPU (graphics processing unit) computing reach to bring AI (artificial intelligence) to industries ranging from automotive to healthcare to industrial. Among these areas, visual computing is taking hold, with computers analyzing visual, voice, and text data to control devices and machinery. More and more industries are adopting VR (virtual reality) for visual computing as well.

This is where NVIDIA’s ProV (professional visualization) business comes into play. This business offers Quadro GPUs for workstations that enable creators and developers create VR content.

A13_Semiconductos_NVDA_ ProV revenue sequential growth 

At the start of 2017, NVIDIA expanded the market for Quadro by launching the eGPU (external GPU) variant of Quadro to tap the 25-million content creators that use standard notebooks. This helped NVIDIA improve its ProV earnings.

NVIDIA’s ProV revenues rose 15% YoY (year-over-year) and 2% sequentially to $239 million in fiscal 3Q18, driven by increasing demand for powerful mobile workstations—especially in the defense and automotive industries.

Meanwhile, automakers including Audi and BMW are deploying VR in auto showrooms, while US Department of Defense is using VR for mission training. As more industries use VR, the demand for VR content will likely increase, driving demand for NVIDIA’s Quadro GPUs.

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NVIDIA’s ProV developments

NVIDIA is working with HP Inc. (HPQ) to develop an industrial version of the Quadro VR design platform. In September 2017, it announced its intelligent VR collaboration platform, Holodeck, which creates a highly realistic, collaborated, and physically simulated environments wherein designers, developers, and customers from anywhere can come together virtually.

NVIDIA created Holodeck to meet the growing demand for the development of virtual environments and deep-learning techniques.

NVIDIA versus AMD

Advanced Micro Devices (AMD) is the only competitor with NVIDIA in the discrete GPU space. AMD launched its Vega-based Radeon Pro WX 9100 and Radeon Pro SSG (solid state graphics) for workstations, and these compete with NVIDIA’s Pascal-based Quadro P100 GPUs, though NVIDIA is outperforming AMD in this space.

In the next part, we’ll read into NVIDIA’s balance sheet.

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