News about research and development

The article compares how well Nvidia and AMD can afford higher research spending. Nvidia spent $7.05 billion on R&D in the quarter ended July 26, about 7.3% of its $96.22 billion revenue, while AMD spent $2.53 billion in the quarter ended June 27, about 21.9% of its $11.54 billion revenue. Holding other costs and revenue fixed, a 20% rise in quarterly research spending would cost Nvidia an extra $1.41 billion, cutting its $63.73 billion operating income by 2.2%, and cost AMD an extra $506 million, cutting its $1.99 billion operating income by 25.4%. The author notes this is an expense sensitivity, not guidance, since successful research can create future revenue.