Nvidia’s turnover triples in a year thanks to AI chips
Nvidia had revenue of $18.1 billion in the past quarter, which is an increase of 206 percent compared to a year earlier. This tripling is mainly due to the sale of AI chips for use in data centers for generative AI purposes.
More than three-quarters of it Nvidia’s revenue came from the data center branch, namely 14.51 billion dollars. This is 41 percent more than a quarter earlier and 279 percent more than a year earlier. Bee the explanation of the quarterly figures says CFO Colette Kress that this increase is due to the growth of generative AI in both consumer services and enterprise services, such as Adobe software. Services like Adobe Firefly, ChatGPT, Microsoft 365 Copilot, and Zoom AI Companion use Nvidia hardware, primarily the HGX platform. Nvidia announced earlier in November a new GPU for that HGX platform.
The company expects the data center market to continue to grow and deliver revenue growth in the coming quarters. At the same time, there are concerns about export restrictions to China. The Chinese market accounts for about 20 to 25 percent of Nvidia’s data center revenue. “We expect sales to this region to decline significantly in the fourth quarter.” The company believes it can compensate for this through strong growth in other regions. The company also wants to release chips that can be exported to China.
Gaming generated 2.86 billion in revenue in the past quarter, 15 percent more than the previous quarter and an increase of 81 percent compared to last year. This is double the situation before the corona crisis, even though the entire PC market is now somewhat disappointing, says Nvidia. The company says Nvidia can do well in the gaming market “because of the significant value we add with innovations like RTX and DLSS.”
Nevertheless, Nvidia expects that its gaming branch will yield less in the fourth quarter of 2023 than in the third quarter for seasonal reasons. Still, the company expects revenue to rise to around $20 billion due to strong growth from the data center market. Net income in the third quarter was $9.24 billion, up 49 percent from the previous quarter and up 1,259 percent from a year earlier.