Nvidia revenue skyrockets as CEO Jensen Huang's wealth hits $44 billion

midian182

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In brief: Few companies have benefited from the AI boom quite like Nvidia. Team Green's latest quarterly financial report showed revenue tripling compared to a year earlier, while net income was up 1,259% year-over-year. It's good news for CEO Jensen Huang, who is now the world's 27th richest person thanks to a $44 billion fortune tied to Nvidia's stock price. However, concerns about new restrictions on Chinese exports linger.

Nvidia announced revenue of $18.12 billion for the third quarter of its financial year, beating Wall Street expectations of $16.18 billion. That marks a 206% increase compared to the $5.9 billion of revenue brought in during the same quarter last year. It's also a 34% jump over Q2's $13.5 billion.

Net income was especially impressive: $9.24 billion in Q3, versus $680 million in the third quarter of 2022, marking a 1,259% rise.

Nvidia's data center business, which includes its lucrative AI products, saw a record revenue of $14.51 billion, up 41% from the previous quarter and 279% from a year ago. Nvidia said half of this segment's revenue came from cloud infrastructure providers, while the other half was from large companies and consumer internet entities.

Nvidia's gaming segment has rebounded from last year, up 81% to $2.86 billion and 15% from the previous quarter. Professional Visualization revenue, meanwhile, was up 108% YoY to $416 million, while Automotive revenue was flat (up 4% YoY) at $261 million. The differences in growth and revenue once again illustrate why Nvidia is considered an AI company rather than a gaming company these days.

There is a dark cloud on Nvidia's horizon in the form of US export controls on AI products to China. The Biden administration tightened restrictions in late October, adding the A800, H800, and RTX 4090 to the list of (essentially) banned products.

CFO Colette Kress wrote "These licensing requirements did not have a meaningful impact on our revenue in the third quarter of fiscal 2024 as they were announced near the end of the fiscal quarter and we had additional demand from customers outside of the named country groups."

But with around 25% of Nvidia's data center revenue coming from China, Kress added "We expect that our sales to these destinations will decline significantly in the fourth quarter of fiscal 2024, though we believe the decline will be more than offset by strong growth in other regions." Nvidia's China's sales increased from $1.15 billion in Q2 2022 to $4.08 billion in Q2 2023.

Nvidia's stock is up around 240% this year, thanks mostly to the excitement around AI – even though the majority in the tech industry think it's overhyped. The rising price has certainly helped Huang. His net worth has been climbing over the years, skyrocketing in the last 12 months and propelling him onto the list of the top 30 richest people in the world with a $44 billion fortune.

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I'm not a financial advisor so take what I'm saying with a grain of salt. I honestly do not believe there is much more room.for growth in nVidias stock. Their chips have become so expensive and hard to get that other companies in the space are popping up like crazy. Developers are also finding creative solutions with consumer GPUs to avoid paying $50k/card. Which, I'd like to point out, been watching the price of the H100's for awhile now and they dropped from a high of about $70,000 down to $35-40,000.

nVidia has saturated the market for those able to bit their H100 cards and those who can't are looking at other options. A popular one for developers looking to save money is the 7900xtx. A big reason why I don't think the AMD 8000 series will have an 8900xtx is that 8t will be repurposed as an AI chip. They won't be able to compete directly with nVidia on a per-chip basis but they might be able to compete on a $$$ per compute unit basis. And that won't exactly be hard if nVidia keeps charging 50k+ for their AI chips.

That said, I cashed out my nVidia stock earlier this year. I made my money, I got out and I'm disgusted with their business practices. There are other AI growth stocks that could double or triple. No, I'm not going to 10x my money but I do believe I can beat the market. Which, If I 2x my money I'm beating the market expectation of about 5-7% a year.

The "money printer go brrrr" days are over. I'm comfortable taking my money and putting it in a place where I can make slow, reliable gains until I retire.
 
I'm not a financial advisor so take what I'm saying with a grain of salt. I honestly do not believe there is much more room.for growth in nVidias stock. Their chips have become so expensive and hard to get that other companies in the space are popping up like crazy. Developers are also finding creative solutions with consumer GPUs to avoid paying $50k/card. Which, I'd like to point out, been watching the price of the H100's for awhile now and they dropped from a high of about $70,000 down to $35-40,000.

nVidia has saturated the market for those able to bit their H100 cards and those who can't are looking at other options. A popular one for developers looking to save money is the 7900xtx. A big reason why I don't think the AMD 8000 series will have an 8900xtx is that 8t will be repurposed as an AI chip. They won't be able to compete directly with nVidia on a per-chip basis but they might be able to compete on a $$$ per compute unit basis. And that won't exactly be hard if nVidia keeps charging 50k+ for their AI chips.

That said, I cashed out my nVidia stock earlier this year. I made my money, I got out and I'm disgusted with their business practices. There are other AI growth stocks that could double or triple. No, I'm not going to 10x my money but I do believe I can beat the market. Which, If I 2x my money I'm beating the market expectation of about 5-7% a year.

The "money printer go brrrr" days are over. I'm comfortable taking my money and putting it in a place where I can make slow, reliable gains until I retire.
Considering you negativity towards nvidai in every post, it is very very interesting to know you were a nvidia stock holde. AI boom has just began.
 
Nvidia innovates too much for betterment of humanity.
That is why they will alwasy thrive.

Anyways, main point everyone is missing.

Nvidia Expense - 2.5 billions
Amd Expense - 2.5 Billion

Nvidia Net Profit - 9 Billion
Amd Net Profit - 300 Million

Amd is basically selling products at loss.

I urge all amd fanboys, stock holders to buy many many amd products.
Amd needs to you guys now.
Support Them.

 
Considering you negativity towards nvidai in every post, it is very very interesting to know you were a nvidia stock holde. AI boom has just began.
I actually try to be unbiased, I was an nVidia customer for 15 years but I eventually got tired of the way they're driving the industry and stopped giving them my money. Another thing I dislike about nVidia is how they handle Linux support.

If they would change their business model to become more pro consumer I would switch back as I'm not brand loyal, but as things stand now I doubt I'll ever buy another nVidia product.

When I build a PC for someone else I almost always try to get them an nVidia card but I don't think I will ever personally own another one of their products willingly.
 
I actually try to be unbiased, I was an nVidia customer for 15 years but I eventually got tired of the way they're driving the industry and stopped giving them my money. Another thing I dislike about nVidia is how they handle Linux support.

If they would change their business model to become more pro consumer I would switch back as I'm not brand loyal, but as things stand now I doubt I'll ever buy another nVidia product.

When I build a PC for someone else I almost always try to get them an nVidia card but I don't think I will ever personally own another one of their products willingly.
Well, that is wrong understanding.
Nvidia is the pro-consumer brand.
That is why everyone wants nvidia products.
Amd is anti-consumer.
They ask nvidia prices while offering less than half the stability, software, features.
 
Well, that is wrong understanding.
Nvidia is the pro-consumer brand.
That is why everyone wants nvidia products.
Amd is anti-consumer.
They ask nvidia prices while offering less than half the stability, software, features.
Well I strongly disagree with that statement. As I use open-source drivers for my 6700xt, the first non-nvidia card I've ever owned, I have a much better experience with it. Instead if innovating, nVidia has made proprietary tech and then invested heavily in game development so that it is optimized for their platform. This leads to a better user experience for the consumer.

nVidia does provide a better user experience for most people which is why when I do builds I almost always recommend an nVidia card. I know people building PCs are not interesting in the politics of the gaming industry, they just want to play games without issue.

I, however, am interested in the politics of the gaming and hardware industry. nVidia has been trying to build an "nVidia only" gaming monopoly for years. For the most part, from my perspective, this was only a minor annoyance. It wasn't until the RTX branding came out did I really start to have an issue with their tech. Most people don't remember this, but nVidia tried to patent ray tracing so that other manufacturers couldn't support it. That was when I decided I would never buy another one of their cards.

They did, however, manage to successfully accomplish part of this with DLSS. DLSS is much better than FSR but the tradeoff for FSR is compatibility over quality. Considering that nVidia doesn't even fully support DLSS between their own generation of videocards(IE, forcing you to upgrade if you want to use new features), I find that very anti consumer.

Then, if you go by mm^2 on the die size, the 4090 is a 4080, the 4080 is a 4070 and the 4070 is a 4060. This is further supported by the smaller memory bus width. They cite DLSS as the reasons their cards are worth what they're charging but I don't believe that DLSS will work for more than 1 generation so renaming a card and raising the price "because DLSS" is not worth it to me. The DLSS premium theyre charging on their cards likely won't be supported once the 50 series is released.

I won't argue that their technology is great or that they generally have a better user experience than AMD unless you're a Linux weirdo like me, but I see nVidia as putting a stranglehold on the gaming industry and we cannot allow them to be a monopoly. If people think GPUs are expensive now then you've seen nothing if they get a monopoly.

It is their business practices, not their products, that make me anti-nVidia.
 
Well I strongly disagree with that statement. As I use open-source drivers for my 6700xt, the first non-nvidia card I've ever owned, I have a much better experience with it. Instead if innovating, nVidia has made proprietary tech and then invested heavily in game development so that it is optimized for their platform. This leads to a better user experience for the consumer.

nVidia does provide a better user experience for most people which is why when I do builds I almost always recommend an nVidia card. I know people building PCs are not interesting in the politics of the gaming industry, they just want to play games without issue.

I, however, am interested in the politics of the gaming and hardware industry. nVidia has been trying to build an "nVidia only" gaming monopoly for years. For the most part, from my perspective, this was only a minor annoyance. It wasn't until the RTX branding came out did I really start to have an issue with their tech. Most people don't remember this, but nVidia tried to patent ray tracing so that other manufacturers couldn't support it. That was when I decided I would never buy another one of their cards.

They did, however, manage to successfully accomplish part of this with DLSS. DLSS is much better than FSR but the tradeoff for FSR is compatibility over quality. Considering that nVidia doesn't even fully support DLSS between their own generation of videocards(IE, forcing you to upgrade if you want to use new features), I find that very anti consumer.

Then, if you go by mm^2 on the die size, the 4090 is a 4080, the 4080 is a 4070 and the 4070 is a 4060. This is further supported by the smaller memory bus width. They cite DLSS as the reasons their cards are worth what they're charging but I don't believe that DLSS will work for more than 1 generation so renaming a card and raising the price "because DLSS" is not worth it to me. The DLSS premium theyre charging on their cards likely won't be supported once the 50 series is released.

I won't argue that their technology is great or that they generally have a better user experience than AMD unless you're a Linux weirdo like me, but I see nVidia as putting a stranglehold on the gaming industry and we cannot allow them to be a monopoly. If people think GPUs are expensive now then you've seen nothing if they get a monopoly.

It is their business practices, not their products, that make me anti-nVidia.
You are just doing injustice to yourself by buying the inferior product.
By doing so, you are also supporting anti-innovation.
Though, u need to understand that people will always buy the overall better product. Which is nvidia.
 
You are just doing injustice to yourself by buying the inferior product.
By doing so, you are also supporting anti-innovation.
Though, u need to understand that people will always buy the overall better product. Which is nvidia.
Sorry to say this, but nVidia has offered you the kool-aid, and you've drunk it like an addict.
 
Guess the 50 series won't be getting any cheaper
My thoughts exactly. With a 1259% growth in net income, I think its ludicrous that people are expecting nVidia's pricing on the next generation cards to be any more gamer friendly. nVidia did not experience that much of a net profit increase by priding their cards in a gamer friendly manner. They are drunk on their own profits and riding high on the AI fad. IMO, the AI Fad will not last and nVidia has to continue to be profitable. That continuity will only come from them way over pricing their gaming/consumer cards when the AI fad wears off.
 
Nvidia is now basically Apple. They can charge their products at any price point regardless how high it is and people would still buy it.

Unfortunately this trend is not going to stop. Their flagship GPUs will continue to get higher in the future.
 
Sorry to say this, but nVidia has offered you the kool-aid, and you've drunk it like an addict.
I don't know what he DRINKED, who cares :) but he is not wrong about the facts of what he SAYS :)

and the facts are:
nvidia has more stability especially across old games (DX9, OpenGL)
has more features, like CUDA, where AMD is a distant second with their ROCm
is faster
is more efficient
is innovative while AMD only catches up to them

I don't know whare you are from, but where I come from this qualifies
 
Well, that is wrong understanding.
Nvidia is the pro-consumer brand.
That is why everyone wants nvidia products.
Amd is anti-consumer.
They ask nvidia prices while offering less than half the stability, software, features.



HAHAHA what a joke, are you for real?


I don't know what he DRINKED, who cares :) but he is not wrong about the facts of what he SAYS :)

and the facts are:
nvidia has more stability especially across old games (DX9, OpenGL)
has more features, like CUDA, where AMD is a distant second with their ROCm
is faster
is more efficient
is innovative while AMD only catches up to them

I don't know whare you are from, but where I come from this qualifies

Are you his alter ego? same response basically.
 
AMD and Nvidia are each guilty of their own sins. Expecting Intel to be the voice of reason is madness. Mindlessly plunging one's face on the CEO of Nvidia's midsection is actually the passtime of only a select few. Nvidia built an ecosystem and are reaping the rewards from it. AMD may have got their stuff in order with the CPU world, but still making Bulldozer-Hector Ruiz era blunders in the GPU world. They're correcting that, I bet you anything in the next few years AMD will be in a much better position.
 
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Nvidia innovates too much for betterment of humanity.
That is why they will alwasy thrive.

Anyways, main point everyone is missing.

Nvidia Expense - 2.5 billions
Amd Expense - 2.5 Billion

Nvidia Net Profit - 9 Billion
Amd Net Profit - 300 Million

Amd is basically selling products at loss.

I urge all amd fanboys, stock holders to buy many many amd products.
Amd needs to you guys now.
Support Them.
amd is still paying expenses on 49 busd xilinx merger.
and nvidia's golden ai era will end soon.
LLM workload only needs int/fp 4-8 bit processing, while gaming gpu is fp 32 bit , which is why microsoft, etc. plan to make their own LLM accelerator chip.

amd cdna 1 and 2 isnt suitable for LLM because they are fp64 oriented for simulation workload in Frontier supercomputer.
LLM oriented cdna 3 will be launched next month so lets see.
 
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AMD and Nvidia are each guilty of their own sins. Expecting Intel to be the voice of reason is madness. Mindlessly plunging one's face on the CEO of Nvidia's midsection is actually the passtime of only a select few. Nvidia built an ecosystem and are reaping the rewards from it. AMD may have got their stuff in order with the CPU world, but still making Bulldozer-Hector Ruiz era blunders in the GPU world. They're correcting that, I bet you anything in the next few years AMD will be in a much better position.
AMD has been making chiplets since 2019. Nvidia hasn't made 1 retail chiplet. I genuinely think once AMD masters the GPU chiplet setup the sky's the limit for AMD.
 
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