Nvidia (NVDA) expects FQ2 revenue of $1.1B (+/- 2%), favorable to a $1.08B consensus. But gross margin is expected to slip to 54% from FQ1's 55.1%.
In its CFO commentary (.pdf), Nvidia states GPU sales (81% of revenue) rose 14% Y/Y, even with FQ4's growth rate. Strong high-end PC GPU (GeForce GTX) and GRID (server GPU) sales provided a boost, as did continued Tesla (HPC CPU) growth.
Tegra sales, which plunged 37% Y/Y in FQ4 thanks to share loss to Qualcomm and others, rose 6% Q/Q and 35% Y/Y to $139M on the back of higher smartphone and automotive volumes.
Opex only rose 4% Y/Y, a marked slowdown from FQ4's 13% clip and giving a boost to EPS. A $500M share repurchase agreement was struck during the quarter; Nvidia added $1B to its buyback program last November.
Nvidia's full earnings release