With quarterly revenue of $18.4 billion (nearly €17 billion), Nvidia’s data centre segment exceeded market expectations.
Analysts were already counting on Nvidia’s revenue to grow significantly. After all, the company’s GPUs are crucial for AI, where demand has exploded over the past 12 months with the rise of artificial intelligence. Nvidia explains that the demand is driven by enterprise software and consumer applications across several sectors, including automotive, healthcare and financial services.
Revenue from AI workloads falls under Nvidia’s Data Center segment. Year over year, this segment grew 409 per cent to a total of $18.4 billion, making it the largest source of revenue for Nvidia. The company posted quarterly revenue of $22.1 billion, while the market assumed data centre revenue of $16.8 billion. Major cloud providers such as AWS, Microsoft Azure and Google Cloud contributed more than half of the data centre revenue. Hopper GPUs, such as the H100, did exceptionally well.
The market looked forward to Nvidia’s quarterly results because these financial results provide insight into the state of generative AI. In recent days, Nvidia has even surpassed Google parent Alphabet and Amazon regarding market value. When the financial results were announced aftermarket, the stock rose further. Yesterday at 4 p.m., the stock was still worth $674.72 but has since risen to about $736.
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The full-quarter revenue of $22.1 billion showed year-over-year growth of 265 per cent. Net profit was $12.3 billion, representing growth of $769. For the coming quarter, Nvidia is counting on total revenue of $24 billion, with a slack of 2 percent. CEO Jensen Huang added that “conditions are excellent for continued growth” for the full year. He expects demand to remain high because of market interest in generative AI.
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