Nvidia Made Double the Revenue This Year Thanks to ChatGPT

Nvidia is quite literally drowning in money at the moment, as shown by its latest and highly anticipated financial report for the second quarter of its 2024 fiscal year.

The hardware company’s data center wing is the hero here with over double the sales compared to last year. Needless to say, the department has now established itself as the main money maker for Nvidia.

Before the data center department, Nvidia’s main revenue generator used to be the gaming division, but now it’s starting to struggle with only a meager 21.7% annual growth. Clearly, PC gamers are starting to realize that each new generation of Nvidia gaming GPUs is less value for money.

The company’s shares also showed remarkable growth before the earnings report was released. But the stock relinquished a portion of these advances a day earlier, attributed to certain potential investors cashing in on profits and expressing caution due to apprehensions about the substantial repercussions of an earnings shortfall.

But instead of missing its financial predictions, the company actually performed much better than expected, reporting an impressive $13.5 billion in revenue, which translates to an 88% growth compared to the last quarter and a 101% yearly increase.

Nvidia’s data center division was responsible for a whopping $10 billion of the total revenue. This represents a gigantic sequential increase of 141% and an annual growth of 171%. The increase can be credited to a high demand coming from internet and cloud computing firms.

The company’s chief financial officer elaborated on the reason behind such monumental growth in data center revenue:

Strong demand for the NVIDIA HGX platform based on our Hopper and Ampere GPU architectures was primarily driven by the development of large language models and generative AI.

Nvidia’s revenue and earnings per share (EPS) of $2.70 surpassed analyst projections by a substantial margin. The company went beyond expectations by offering a remarkable $16 billion outlook for the ongoing quarter, a figure that could represent a striking 170% annual growth and elevate Nvidia to a completely new level of revenue.

This guidance of $16 billion also surpasses the previously forecasted $12.61.

A twofold expansion in Nvidia’s accounts receivable also contributed to this massive growth. During the previous quarter, this figure was $7 billion, while it stood at $4 billion in the first quarter.

Via: Wccftech

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