Nvidia is the one firm that is truly benefiting from the AI explosion. Team Green has just released its fiscal year 2024 second quarter results, and despite the general fall in the technology industry, the company set multiple earnings records.
Nvidia’s revenue for Q2 FY2024 was a huge $13.5 billion, a massive 101% increase over the same quarter last year. The majority of that ($10.32 billion) came from its data center-class GPUs used in AI systems, which was another record and more than double what the same category earned the previous quarter.
The net income is possibly the most remarkable figure. With the help of high-margin data centre cards the business made $6.1 billion in profit during the quarter, up 843% year on year and more than double what it made the previous quarter.
Professional visualisation and OEM & IP were the two markets that did not observe YoY growth. Even gaming, which hasn’t gone well for Nvidia due to the lukewarm response to the RTX 4060/Ti, was up 22 percent year on year to $2.48 billion. According to the business, gaming is back on track, with 20% of its install base now sporting an RTX 3060 or higher. It also stated that gamers will soon have the ability to upgrade.
The figures indicate that Nvidia exceeded its $11 billion revenue forecast for the second quarter. It now expects revenue to rise 18% in Q3, reaching $16 billion, setting new highs for Jensen Huang and company.
This year, global demand for Nvidia’s AI-focused products has surged. Saudi Arabia and the UAE are just two of the countries that have joined the AI arms race, purchasing thousands of Nvidia chips, including the H100. Meanwhile, China is spending billions on them, despite the fact that they are scaled-down versions designed particularly to meet Washington’s interconnection speed limits for China-bound GPUs.
According to analysts, demand for Nvidia’s AI products exceeds supply by at least 50%. According to the Financial Times, the IT giant plans to treble manufacturing of the GH100 and ship 1.5 million units by 2024. It’s easy to see why some people are concerned about Nvidia focusing less on gaming, especially since computing and networking now account for 77% of company income.
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