Unveiling Nvidia’s Record-Breaking Earnings: A Glimpse into AI’s Impending Challenges

NVIDIA announced its financial results for the second quarter of fiscal year 2024, reporting record revenue of $13.51 billion, an increase of 88% from the previous quarter and 101% from the same period a year ago. The company’s Data Center revenue also hit a record of $10.32 billion, rising by 141% from the previous quarter and 171% from a year ago.

GAAP earnings per diluted share for the quarter were $2.48, which marked a significant increase of 854% from a year ago and 202% from the previous quarter. Non-GAAP earnings per diluted share were $2.70, up 429% from a year ago and 148% from the previous quarter.

NVIDIA’s CEO, Jensen Huang, stated that a new computing era has begun, with companies transitioning to accelerated computing and generative AI. The company’s GPUs, combined with its networking technologies and software stack, play a crucial role in the emerging landscape of generative AI.

NVIDIA campus in Santa Clara, Calif.

The company returned $3.38 billion to shareholders during the quarter through share repurchases and cash dividends. As of the end of the second quarter, NVIDIA had $3.95 billion remaining under its share repurchase authorization. The Board of Directors also approved an additional $25.00 billion in share repurchases.

For the third quarter of fiscal 2024, NVIDIA anticipates revenue of approximately $16.00 billion, with GAAP and non-GAAP gross margins expected to be around 71.5% and 72.5%, respectively.

In terms of product highlights, NVIDIA achieved significant progress across various sectors:

Data Center:

• Second-quarter revenue reached a record $10.32 billion, a 141% increase from the previous quarter and 171% growth from a year ago.
• NVIDIA introduced the GH200 Grace Hopper Superchip and the L40S GPU, designed to accelerate AI and HPC applications.
• Collaborations were announced with various companies to advance AI capabilities across industries.

Gaming:

• Second-quarter revenue in the gaming segment was $2.49 billion, up 11% from the previous quarter and 22% from a year ago.
• NVIDIA launched the GeForce RTX 4060 family of GPUs, powered by the Ada Lovelace architecture.
• The company expanded its DLSS technology to more games, enhancing the gaming experience.

Professional Visualization:

• Second-quarter revenue in this sector was $379 million, up 28% from the previous quarter.
• NVIDIA introduced new desktop workstation GPUs based on the Ada Lovelace architecture and enhanced the Omniverse platform for 3D pipelines and generative AI.

Automotive:

• Second-quarter revenue in the automotive segment was $253 million, up 15% from a year ago.
• NVIDIA’s DRIVE Orin technology powered the XPENG G6 Coupe SUV’s advanced driver assistance system.

Overall, NVIDIA’s strong financial results highlight its leadership in AI, accelerated computing, and generative AI applications across various industries.

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