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Growth Picks Up for NVIDIA’s Professional Visualization Business

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May. 29 2018, Updated 10:31 a.m. ET

Professional visualization business

NVIDIA’s (NVDA) automotive revenue growth has slowed as it focuses on the larger opportunity of autonomous driving. On the other hand, its ProV (professional visualization) revenue has accelerated after several years of slowdowns, as it took time for VR and AR (virtual and augmented reality) to pick up.

Over the last three years, ProV’s revenue has grown at an average annual rate of only 6%, with the largest growth of 12% coming in fiscal 2018 alone as the company expanded its ProV products’ applications.

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NVIDIA’s ProV revenue

In fiscal Q1 2019, NVIDIA’s ProV revenue rose 22% YoY (year-over-year) but fell 1% sequentially to $251 million. Even then, its growth was better than seasonal, as the fiscal first quarter is a weak one, in which it usually reports high-single-digit sequential declines. This growth was driven by demand for real-time rendering and emerging applications such as AI and VR.

In terms of end markets, strong demand was seen in the public, healthcare, and retail sectors. Some of the major orders for high-end Quadro GPUs (graphics processing unit) came from Columbia University for AI and Siemens for CT (computed tomography) and ultrasound solutions.

Even Advanced Micro Devices (AMD) is reporting strong growth in professional GPU sales.

NVIDIA is making product developments in the ProV space, as it believes that VR and AR represent strong growth opportunities across various verticals such as construction, product design, and gaming. We’ll look at these product developments in the next part of the series.

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