DBT Bureau
Bengaluru, 29 August 2024
Chip maker, Nvidia’s Q2 earning beat estimates as revenue continued to surge on the back of strong data centre business. However, the share price of the company fell in the extended trading hours.
In the second quarter ended June, revenue was $30.04 billion, which was more than doubled as compared to the same period of last year.
Revenue in Nvidia’s data center business, which includes its AI processors, climbed 154% from a year earlier to $26.3 billion, accounting for 88% of total sales. This showed, the company reaped the dividends coming from AI-related spending.
Net income more than doubled to $16.6 billion, or 67 cents per share, in the quarter, from $6.18 billion, or 25 cents per share, in the year-ago period.
The company said it expects about $32.5 billion in current-quarter revenue, which is more than the street expectations. Nvidia’s board also approved a new $50 billion share buyback plan, the latest filings showed.
Revenue by business segment:
- Data center: $26.3 billion, up 16% from Q1 and 154% from last year’s Q2
- Gaming and AI PC: $2.9 billion, up 9% from Q1 and 16% from last year’s Q2
- Professional visualization: $454 million, up 6% from Q1 and 20% from last year’s Q2
- Automotive and robotics: $346 million, up 5% from Q1 and 37% from last year’s Q2
According to the company, many customers are waiting for Nvidia’s next-generation AI chip, called Blackwell. Nvidia said it shipped samples of Blackwell chips during the quarter, and made a change to the product to make it more efficient to manufacture.
Most of the demand for its chips are coming from global tech giants like Microsoft, Alphabet, Meta and Tesla, who are using Nvidia’s chips, such as the H100 and H200 for most of generative AI applications, such as OpenAI’s ChatGPT.
Management comments:
“Hopper demand remains strong, and the anticipation for Blackwell is incredible. NVIDIA achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI,” said Jensen Huang, Founder and CEO of NVIDIA.
“Blackwell samples are shipping to our partners and customers. Spectrum-X Ethernet for AI and NVIDIA AI Enterprise software are two new product categories achieving significant scale, demonstrating that NVIDIA is a full-stack and data center-scale platform. Across the entire stack and ecosystem, we are helping frontier model makers to consumer internet services, and now enterprises. Generative AI will revolutionize every industry,” he added.
