As we all know, Nvidia makes the clever little chips that enter the Nintendo switch, and its alliance with the Kyoto veteran has proved to be a profitable one so far. However, Nvidia's business goes beyond the Tegra line of silicon and includes cryptocurrency mining, AI, car technology, data centers and – of course – PC graphics cards. It has had a hard time in some of these areas in recent years, namely in the cryptocurrency and data center business.
However, the company's latest financial report offered better results than the first quarter, and the revenue guidance for the second quarter was also higher than expected. Nvidia predicts $ 2.55 billion revenue, which is better than the $ 2.53 billion analysts expected. But what is the reason for this positive perspective?
Co-founder and CEO Jensen Huang did this after the publication of the report:
NVIDIA is back on an upward path. We've returned to growth in games, with nearly 100 new GeForce Max-Q laptops. And NVIDIA RTX has achieved broad industrial support, making the ray tracking standard for next generation games.
While Huang mentions the company's popular graphics card, some industry analysts read between the lines and take this as a further confirmation that Nintendo is launching a new Switch SKU this year. Of course, if comes come, the contract between Nintendo and Nvidia will be signed many years ago, and that could be the "growth" to which Huang refers.
Analyst Harlan Sur said "we expect seasonal growth in play (boosted by the second-gen Nintendo Switch ramp) for the rest of the year" while Christopher Rolland added that "guidance hit our expectations, partly helped by a strong return on the Nintendo Switch sales, as the Japanese company is expected to launch a cost-reduced version of the device. "
Such comments give more weight to reports that a Switch Mini is in-depth even though Nintendo is typically tip-lipped and not yet announced (or even suggested) a hardware launch in 2019.