The company’s revenues have tripled in the latest quarter, showcasing an impressive growth trajectory. This performance can be largely attributed to the increasing integration of AI technologies across various industries, ranging from gaming and data centers to automotive and healthcare.
As per the company’s quarterly results, Data Center revenue was a record, up 279% from a year ago and up 41% sequentially. “Strong sales of the NVIDIA HGX platform were driven by global demand for the training and inferencing of large language models, recommendation engines, and generative AI applications,” said the company.
Nvidia’s GPUs, renowned for their parallel processing capabilities, have become integral to AI applications, powering machine learning algorithms and data-intensive tasks. As businesses and researchers continue to leverage AI for enhanced efficiency and innovation, the demand for Nvidia’s cutting-edge hardware has skyrocketed
“Our strong growth reflects the broad industry platform transition from general-purpose to accelerated computing and generative AI,” said Jensen Huang, founder and CEO of Nvidia. “Large language model startups, consumer internet companies and global cloud service providers were the first movers, and the next waves are starting to build,” he added.
Bumpy road ahead
Despite posting impressive numbers in the quarter gone by, Nvidia is pessimistic about the next quarter. The US is imposing restrictions on companies to exports to China and that is set to have a big impact on Nvidia. “Our sales to China and other affected destinations, derived from products that are now subject to licensing requirements, have consistently contributed approximately 20-25% of Data Center revenue over the past few quarters,” the company said.
Nvidia also said that its sales in certain regions — mainly China — will decline significantly in the fourth quarter of fiscal 2024, “though we believe the decline will be more than offset by strong growth in other regions,” the company added.