NVIDIA’s latest financial quarter has witnessed the company shattering its own revenue records, driven by an unprecedented surge in demand for its graphics processing units (GPUs). These GPUs have found remarkable traction in empowering artificial intelligence and generative AI models.
The esteemed Silicon Valley tech firm has revealed a staggering total revenue of $13.51 billion for its fiscal second quarter, concluding on July 30. This reflects a remarkable 101% increase compared to the corresponding period last year. Additionally, there was a remarkable 88% surge in revenue from the previous quarter.
In a statement, Jensen Huang, the CEO and founder of NVIDIA, remarked, “A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI.”
Huang particularly emphasized the comprehensive architecture surrounding their GPUs, incorporating networking and switch technologies, as well as their CUDA AI software stack. He underscored that these components collectively “make up the computing infrastructure of generative AI.”
The data center segment of NVIDIA played a pivotal role in this success. This division, responsible for producing GPUs tailored for high-performance computing and cloud applications, achieved record-breaking revenue of $10.32 billion. This marks an impressive 171% increase annually and an outstanding 141% surge from the previous quarter.
Colette Kress, the Chief Financial Officer of NVIDIA, stated, “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.”
Kress pointed out that major cloud giants such as Google, Amazon Web Services, and Microsoft Azure have adopted NVIDIA’s latest H100 GPUs to accelerate generative AI models. Notable among these models is DALL-E 2, renowned for generating images from text prompts.
Furthermore, NVIDIA revealed that leading enterprise IT vendors are collaborating with the company to bring their AI platform across diverse industries. One such example is NVIDIA’s partnership with VMware to integrate their AI infrastructure into enterprise cloud environments.
Huang commented, “During the quarter, major cloud service providers announced massive NVIDIA H100 AI infrastructures. Leading enterprise IT system and software providers announced partnerships to bring NVIDIA AI to every industry. The race is on to adopt generative AI.”
NVIDIA further fortified its AI leadership by unveiling a series of innovative products and partnerships related to generative models. This encompasses the introduction of NVIDIA AI Workbench, aimed at simplifying the creation and customization of generative AI models. Additionally, the company launched the NVIDIA Avatar Cloud Engine, designed to imbue video game characters with intelligence through natural language AI.
In parallel, NVIDIA teamed up with key partners such as ServiceNow, Accenture, Snowflake, and Hugging Face, to expedite the adoption of generative AI within enterprises.
The substantial upswing in demand for NVIDIA’s GPUs also propelled the company’s gaming revenue to unparalleled heights. The GeForce RTX 40 Series gaming GPUs leverage the same core architecture that underpins data center AI applications.
In total, the gaming division raked in sales of $2.49 billion in the last quarter, marking a significant 22% increase year-on-year. This gaming segment constitutes 18% of NVIDIA’s overall revenue.
“We specialize in markets where our computing platforms can provide tremendous acceleration for applications,” Kress affirmed. “Our platforms address four large markets where our expertise is critical: data center, gaming, professional visualization, and automotive.”
The company emphasized, “We are now a full-stack computing company with data-center-scale offerings that are reshaping the industry.”
NVIDIA is also anticipating strong growth ahead. The company foresees revenue reaching approximately $16 billion in the next quarter, implying an impressive 57% annual growth rate.
