Nvidia is simply awash in cash at the moment, as seen by its most recent and highly anticipated financial report for the second quarter of its fiscal year 2024.
The hardware company’s data centre division is the standout here, with sales more than doubling from the previous year. Needless to say, the division has now established itself as Nvidia’s primary revenue generator.
Nvidia’s main income
Prior to the data centre segment, Nvidia’s main income generator was the gaming industry, but it is now struggling with only a meagre 21.7% yearly growth.
Clearly, PC gamers are recognising that each new generation of Nvidia gaming GPUs represents less value for money.
Before the results report was revealed, the company’s stock rose dramatically.
Certain Potential Investors
However, the company gave up some of these gains a day earlier, which was ascribed to certain potential investors cashing in on profits and expressing caution owing to concerns about the significant ramifications of an earnings miss.
Instead of falling short of its financial targets, the corporation delivered an amazing $13.5 billion in revenue, representing an 88% rise over the previous quarter and a 101% increase year on year.
Nvidia’s data centre branch generated a stunning $10 billion of total revenue. This implies a massive 141% consecutive increase and a 171% yearly gain.
The growth can be attributed to increased demand from internet and cloud computing companies.
The company’s chief financial officer explained why data centre income has increased so dramatically:
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.
Nvidia’s revenue and profits per share (EPS) of $2.70 above analyst expectations by a wide margin.
The company exceeded expectations by forecasting $16 billion in revenue for the current quarter, a figure that may represent a stunning 170% annual growth and propel Nvidia to an entirely new level of revenue.
This guideline of $16 billion also exceeds the previously predicted $12.61 billion.
This huge growth was also aided by a twofold increase in Nvidia’s accounts receivable. This sum was $7 billion in the previous quarter and $4 billion in the first quarter.
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