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HomeTop StoriesNvidia posts record revenue up 265% on booming AI business

Nvidia posts record revenue up 265% on booming AI business

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Nvidia CEO Jensen Huang attends a media roundtable meeting in Singapore on Dec. 6, 2023.
Edgar Su | Reuters

Nvidia reported earnings after the bell that beat Wall Street’s forecast for earnings and sales, and said that revenue during the current quarter would be better than expected, even against elevated expectations for massive growth.

Nvidia shares rose about 6% in extended trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:

  • Earnings: $5.15 per share, adjusted, versus $4.64 per share expected.
  • Revenue: $22.10 billion, versus $20.62 billion expected.

Nvidia said it expected $24.0 billion in sales in the current quarter. Analysts polled by LSEG were looking for $5.00 per share on $22.17 billion in sales. 

Nvidia reported $12.29 billion in net income during the quarter, or $4.93 per share, up 769% versus last year’s $1.41 billion or 57 cents per share. 

Nvidia has been the primary beneficiary of the recent technology industry obsession with large artificial intelligence models, which are developed on the company’s pricey graphics processors for servers.

Nvidia’s total revenue rose 265% from a year ago, based on strong sales for AI chips for servers, particularly the company’s “Hopper” chips like the H100, it said.

Those sales are reported in the company’s Data Center business, which now comprises the majority of Nvidia’s revenue. Data center sales were up 409% to $18.40 billion.

Nvidia said its data center revenue was hurt by recent U.S. restrictions on exporting advanced AI semiconductors to China.

The company’s gaming business, which includes graphics cards for laptops and PCs, was merely up 56% year-over-year to $2.87 billion. Graphics cards for gaming used to be Nvidia’s primary business before its AI chips started taking off, and some of Nvidia’s graphics cards can be used for AI.

Nvidia’s smaller businesses did not show the same meteoric growth. Its automotive business declined 4% to $281 million in sales, and its OEM and other business, which includes crypto chips, rose 7% to $90 million. Nvidia’s business making graphics hardware for professional applications rose 105% to $463 million.

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