Nvidia has recently reported record-breaking revenue of $60 billion, attributing this success to the increased demand for generative artificial intelligence (AI) and accelerated computing. According to Jensen Huang, the founder and CEO of Nvidia, both accelerated computing and generative AI have reached a tipping point, with surging demand witnessed worldwide across various companies, industries, and nations.
The company’s fourth-quarter revenue soared to $22.1 billion, marking a 265% increase from the previous year. Additionally, Nvidia reported a net income of $12.28 billion for the same quarter, reflecting a substantial 769% annual increase. The positive earnings announcement led to a surge in NVDA share price by 8.43% after hours, reaching $731 per share at press time.
Notably, a significant portion of Nvidia’s revenue for the year was derived from its data center business, which experienced record growth over the past year. The Data Center division reported a fourth-quarter revenue of $18.4 billion, representing a 27% increase from the previous quarter and a remarkable 409% rise from the previous year, with annual revenue amounting to $47.5 billion.
Strategic collaborations with industry giants like Google, Cisco, and Amazon Web Services played a vital role in driving Nvidia’s revenue growth in the data center segment. By leveraging partnerships and enhancing AI platforms, Nvidia solidified its position as a key player in the AI technology landscape.
Looking ahead, Nvidia forecasts its revenue to hover around $24.0 billion for the upcoming period, with potential variations of plus or minus 2%. The company’s gross margins are expected to be 76.3% for GAAP and 77.0% for non-GAAP measures, subject to a possible 50 basis point deviation. With the continued growth in demand for AI and accelerated computing solutions, Nvidia remains optimistic about its future prospects in the industry.
