AI surge propels Nvidia's revenue to a staggering $13.5 billion


Posts: 9,162   +117
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What just happened? If there's one company that is really benefitting from the AI boom, it's Nvidia. Team Green has just revealed its second quarter 2024 fiscal year results and, despite the general slump in the technology industry, the firm broke several earnings records.

Nvidia's revenue for Q2 FY2024 came in at a massive $13.5 billion, marking a 101% increase compared to the same period one year earlier. Most of that amount ($10.32 billion) came from its data center-class GPUs used in AI systems - another record and more than double what the same category earned in the previous quarter.

Possibly the most impressive figure is the net income. Helped by the high-margin data center cards – Nvidia generates up to 1,000% profit on every H100 GPU sold – the company made $6.1 billion in profit during the quarter, up 843% YoY and more than triple what it made during the previous quarter.

The only markets that didn't see YoY increases were professional visualization and OEM & IP. Even gaming, which hasn't looked great for Nvidia given the lukewarm (and just plain bad) response to the RTX 4060/Ti, was up 22 percent year over year to $2.48 billion. The company said gaming is back to growth, adding that 20% of its install base now has an RTX 3060 or better. It also said an upgrade opportunity is coming up for gamers.

The results mean that Nvidia smashed its $11 billion revenue projection for the second quarter. It's now expecting revenue to increase 18% in Q3, reaching $16 billion, which would set new records for Jensen Huang and company.

The global demand for Nvidia's AI-focused products has skyrocketed this year. Saudi Arabia and the United Arab Emirates are just two of the countries to have joined the AI arms race, buying up thousands of Nvidia chips, including the H100. China, meanwhile, is spending billions on them, even though they're cut-down versions made specifically to comply with Washington's limitations on interconnection speeds for China-bound GPUs.

Analysts say demand for Nvidia's AI products is exceeding supply by at least 50%. The Financial Times writes that the tech giant wants to triple production of the GH100 as it expects to ship 1.5 million units in 2024. It's easy to understand why some people are worried about Nvidia putting less focus on its gaming segment, especially when 77% of its revenue now comes from computing and networking. Things aren't changing anytime soon, either, as the GH200 superchip is in the works.

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Posts: 1,031   +627
With Dlss 3.5 just dropping,seems that Nvidia is not going to give up at least the software front of gaming in the short term unless this was already in the pipelineto be released, but Moore'slawisdead yt channel is claiming dlss 4 is stilla thing too with some revolutionary progression in the last podcast.
Update , look st the delta between q3-23 and q3-22 it's about 1.1 billion dollars. I believe that Nvidia will not give that up but use this to fall back on gaming when ai hype saturates or peaks to hit target forecast . 1.1 billion dollars can help them hit target forecasts and cause their stock to swell until the next ai bubble rinse repeat.
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Posts: 446   +1,221
Say good bye to cheap graphic cards.

The Leatherman will probably end up selling a XX60 series card for $1k and a XX90 series card for like $4k. Whales will still buy them for sure.

He rly meant it when he said they will never sell cheap GPUs again.


Posts: 298   +524
Well... they will not drop their prices for the gaming GPU anymore then since they could care less now...


Posts: 4,980   +2,854
AI is huge - now. And you think as a business they should tone it down?

How about we wait to see how this plays out.


Posts: 304   +425
"Remember when Nvidia was a gaming-hardware company?"

No, but I remember when they were a bitcoin mining hardware company.