Nvidia reported earnings that surpassed Wall Street expectations and provided strong guidance for the current quarter, with an expected revenue of $32.5 billion, an 80% increase from the previous year. The chipmaker’s revenue continues to surge, rising 122% year-over-year. Net income more than doubled to $16.6 billion. Nvidia’s data center business, including AI processors, saw a 154% increase in revenue to $26.3 billion, and the company shipped samples of its next-generation AI chip called Blackwell during the quarter.
While Nvidia’s gaming business used to be the primary focus, its data center business has been a key driver of growth. Gaming revenue increased 16% to $2.9 billion, and the company also reported revenue from high-end graphic designers, cars, and robots. Nvidia’s graphics business rose 20% and automotive and robotics revenue reached $346 million. The company also approved $50 billion in share buybacks.
Nvidia shares fell 4% in after-hours trading despite the strong earnings report. The company’s market cap recently exceeded $3 trillion, and it remains the second most valuable public company in the world after Apple. Many of Nvidia’s customers are cloud service providers and internet companies such as Microsoft, Alphabet, Meta, and Tesla. Nvidia’s chips, including the H100 and H200, are widely used in generative AI applications such as OpenAI’s ChatGPT, and the company is anticipating strong demand for its next-generation AI chip.
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