- NVIDIA reported a record revenue of $30 billion for the May-July period, surpassing market expectations and reflecting a 122% increase year-over-year.
- Despite strong earnings, NVIDIA’s stock fell 7% post-market due to concerns about potential shifts in investments by tech giants in AI-driven data centers.
On August 28, NVIDIA, the leading U.S. semiconductor giant, announced its financial results for the period from May to July, marking a record-breaking revenue of $30 billion. This impressive figure represents a 15% increase compared to the previous quarter and a staggering 122% rise compared to the same period last year. These results surpassed market expectations, which were set at $28.7 billion, highlighting the significant impact of the ongoing AI boom on NVIDIA’s business performance.
However, the company’s revenue forecast for the next quarter (August-October) stands at around $32.5 billion, aligning with market expectations but suggesting a leveling off in growth momentum. This tempered outlook contributed to a 7% drop in NVIDIA’s stock price in after-hours trading, reflecting investor caution. Analysts suggest that high-tech giants might be re-evaluating their investments in data centers linked to generative AI, a potential factor behind the stock’s decline.
NVIDIA’s record performance is predominantly driven by its data center segment, which recorded $26.3 billion in revenue, a 16% rise from the previous quarter and an impressive 154% increase year-over-year. This growth is fueled by the global demand for accelerated computing and generative AI, as data centers worldwide aim to modernize their computing infrastructure.
The company’s net income also more than doubled, jumping from $6.18 billion or 25 cents per share last year to $16.6 billion or 67 cents per share. NVIDIA’s CEO, Jensen Huang, noted the ongoing strong demand for Hopper GPUs, a state-of-the-art architecture designed for AI workloads, and high expectations for its successor, Blackwell. Blackwell, although not yet officially released, is anticipated to deliver up to 30 times the inference performance of its predecessor, marking a significant leap forward in AI computing capabilities.
NVIDIA’s market capitalization now exceeds $3 trillion, positioning it as the second-largest publicly traded company in the world after Apple. The company’s stock has surged approximately 240% in 2023 and continued to rise by over 150% since the start of 2024, driven by the booming AI market.
NVIDIA counts major tech companies like Microsoft, Alphabet, Meta, and Tesla among its clients, and its chips, including the H100 and H200, are critical components in generative AI systems such as OpenAI’s ChatGPT. The company anticipates launching Blackwell in the fourth quarter, with projected revenues in the billions, according to CFO Colette Kress.
In addition to its data center success, NVIDIA’s gaming segment also showed robust performance, generating $2.9 billion from May to July, a 16% increase from the previous year. This growth is attributed to increased shipments of PC gaming cards and chips for gaming consoles, including those supplied to Nintendo. The company is expanding its support for new gaming titles, such as “Indiana Jones and the Great Circle,” “Dune: Awakening,” and “Dragon Age: The Veilguard,” further solidifying its presence in the gaming industry. NVIDIA’s cloud gaming platform, GeForce NOW, has also started offering services in Japan, marking another step in its global expansion.
This rapid growth, however, comes with its challenges. The recent dip in stock price indicates market concerns about the sustainability of current investment levels in AI-related infrastructure, which could impact NVIDIA’s future performance. Nonetheless, the company remains a pivotal player in the ongoing AI revolution, driving forward both technological advancements and market expectations.