The analysis of NVIDIA's performance in the period from May to July of this year took away so much energy that the company's forecasts for the third quarter of 2018 fiscal year, which had already come in the calendar of this developer of graphics solutions, were not touched yesterday. Meanwhile, NVIDIA expects that this quarter will increase revenue to $ 2.35 billion (+ 5.4%), while operating expenses will grow by about 7%.
Analysts immediately became interested in this dynamic, and NVIDIA's CFO had to answer the question about the projected increase in operating expenses in the third quarter. First, as she explained, in the third quarter NVIDIA traditionally increases the compensation package - apparently, it is about some quarterly bonuses to employees and management. Secondly, the company's management is going to move to the new headquarters building this quarter. His office at the head of the company, we recall, will not be there, and he will be able to occupy vacant premises available at the time of the visit. Moreover, NVIDIA will not refuse to use the former headquarters building either.
Finally, the company's CFO explained that it will be necessary to invest in the development of autopilot systems, artificial intelligence and new gaming solutions, and so the costs will increase - including through the increase in the company's staff.
The head of NVIDIA also did not keep silent, and concentrated in answering the question about sources of revenue growth on a list of contributing factors. First of all, he is confident that NVIDIA has a pronounced advantage in the "strategic position in the market." The product line of the company is stronger than ever. Stronger than last year, and the year before last. It was these "historical parallels" that the founder of NVIDIA deemed it necessary to hold for more credibility. To the strong strategic positioning, he also added "the value of the actual architecture."
The general director of the company called the gaming market growing, and the strategic position of NVIDIA on it is "magnificent." Moreover, he believes that games have become the first sphere of active application of artificial intelligence technologies. Actually, the expectations of the growth in demand for gaming solutions are based on the confidence of NVIDIA's management in the ability to increase revenue in the third quarter.