Nvidia: we have become a software company

Nvidia believes it has become a software and platform company. That’s what CEO and founder Jensen Huang said when discussing the latest quarterly earnings in response to questions about future profit margins.

It starts with hardware, Huang says, but Nvidia can do little without software. “If you look at almost all of our products, like the GPU, that’s the starting point. But everything we do, whether that’s artificial intelligence, data analytics, healthcare, robotics or self-driving cars, requires software. applies to all these platforms: gaming, rendering, cloud graphics.”

According to Huang, it’s impossible to just grab a chip and expect it to work. “And so we are most concerned with software-related things. We are also a platform company. Our platform is available to all manufacturers and cloud providers.”

According to Huang, this means that the company’s profit margins will increase over time. “That is of course as a platform company that is intensively involved with software.” The question about profit margins came up in the discussion of the recent quarterly figures.

Nvidia posted revenue of $3.01 billion, down 5 percent from the same quarter a year ago. Operating income was 12 percent lower at $927 million. The gaming division achieved sales of around $1.6 billion; two-thirds of that came from RTX cards. The manufacturer also claims that there is a growing demand for game laptops with Nvidia video cards, but did not mention exact figures.