Nvidia Reports Record Second Quarter Results on Growing Data Center Demand
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Nvidia today announced record revenue for its second quarter of fiscal 2024 (ending July 30, 2023), exceeding Wall Street expectations. The processor and graphics platform provider reported record second-quarter revenue of $13.51 billion, up 101% year-on-year and sequentially. Nvidia's data center segment grew 171% year-on-year and 141% sequentially to $10.32 billion, accounting for 76% of total second-quarter revenue.
Nvidia is proving to be the AI innovation engine businesses needNvidia's ability to orchestrate rapid product development, create strong alliances (including one with VMWare announced earlier this week), and simultaneously attract software developers to their platform is a tremendous strength enabling the growth of AI and large language model (LLM) adoption. A strong sign that the strategy is working is how the company has grown total revenue by 229% over the past 5 quarters to a record $13.5 billion in the second quarter of fiscal 2024. .
Gross margin also climbed to 71.2% in the second quarter from 45.9% a year ago. Increased profits are quickly plowed back into R&D, as co-founder, chairman, and CEO Jensen Huang said, Nvidia is about to release a new product or platform every six months. The increased profitability creates funding capacity for the company to maintain its peak investment in AI innovation.
Exceptionally strong demand for data center products critical to generative AI and LLM creation fueled their record quarter.
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Register now“We add new products every six months to meet the growing demand for generative AI,” Huang said during the company's earnings conference call today. He continued, "The new Nvidia computing era has begun."
Data center revenues soar 171% in one yearData center revenue nearly tripled in the past five quarters to $10.3 billion, becoming Nvidia's largest segment, accounting for 76% of revenue. Nvidia defines its data center segment as including server graphics processing units (GPUs), networking and cloud AI software.
Data center revenue remains the engine of growth that Nvidia relies on to fuel the continued development of its platform and processors. The company is seen as a leading indicator of the demand for AI in business. For institutional investors and Wall Street analysts, this confirms that the AI generation and demand for LLMs is real.
“The demand is huge,” CFO Colette Kress said of data center growth. "Industry and customers are demanding and our visibility extends into next year."
Kress and Huang pointed out on the earnings conference call that the explosive growth Nvidia is experiencing
Visit our on-demand library to view VB Transform 2023 sessions. Sign up here
Nvidia today announced record revenue for its second quarter of fiscal 2024 (ending July 30, 2023), exceeding Wall Street expectations. The processor and graphics platform provider reported record second-quarter revenue of $13.51 billion, up 101% year-on-year and sequentially. Nvidia's data center segment grew 171% year-on-year and 141% sequentially to $10.32 billion, accounting for 76% of total second-quarter revenue.
Nvidia is proving to be the AI innovation engine businesses needNvidia's ability to orchestrate rapid product development, create strong alliances (including one with VMWare announced earlier this week), and simultaneously attract software developers to their platform is a tremendous strength enabling the growth of AI and large language model (LLM) adoption. A strong sign that the strategy is working is how the company has grown total revenue by 229% over the past 5 quarters to a record $13.5 billion in the second quarter of fiscal 2024. .
Gross margin also climbed to 71.2% in the second quarter from 45.9% a year ago. Increased profits are quickly plowed back into R&D, as co-founder, chairman, and CEO Jensen Huang said, Nvidia is about to release a new product or platform every six months. The increased profitability creates funding capacity for the company to maintain its peak investment in AI innovation.
Exceptionally strong demand for data center products critical to generative AI and LLM creation fueled their record quarter.
EventVB Transform 2023 on demand
Did you miss a session of VB Transform 2023? Sign up to access the on-demand library for all of our featured sessions.
Register now“We add new products every six months to meet the growing demand for generative AI,” Huang said during the company's earnings conference call today. He continued, "The new Nvidia computing era has begun."
Data center revenues soar 171% in one yearData center revenue nearly tripled in the past five quarters to $10.3 billion, becoming Nvidia's largest segment, accounting for 76% of revenue. Nvidia defines its data center segment as including server graphics processing units (GPUs), networking and cloud AI software.
Data center revenue remains the engine of growth that Nvidia relies on to fuel the continued development of its platform and processors. The company is seen as a leading indicator of the demand for AI in business. For institutional investors and Wall Street analysts, this confirms that the AI generation and demand for LLMs is real.
“The demand is huge,” CFO Colette Kress said of data center growth. "Industry and customers are demanding and our visibility extends into next year."
Kress and Huang pointed out on the earnings conference call that the explosive growth Nvidia is experiencing
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