Nvidia has reported a 122% year-over-year revenue growth, driven by strong demand for its data center chips, particularly those used in artificial intelligence (AI) applications. The company’s earnings beat Wall Street expectations, with an adjusted earnings per share of 68 cents, surpassing the forecasted 64 cents. Nvidia also reported revenue of $30.04 billion, exceeding the expected $28.7 billion, and provided guidance for the current quarter at approximately $32.5 billion, higher than analysts’ prediction of $31.7 billion. Despite the positive results, Nvidia shares fell 8% in extended trading.
Net income for Nvidia more than doubled, reaching $16.6 billion, or 67 cents per share, compared to $6.18 billion, or 25 cents per share, in the same quarter last year. The company’s data center business, which includes its AI processors, generated $26.3 billion in revenue, a 154% increase from a year ago and 88% of Nvidia’s total sales, outperforming expectations of $25.24 billion. Notably, $3.7 billion of this revenue came from networking products. Nvidia’s AI chips, including the H100 and H200 models, are widely used by major companies such as Microsoft, Alphabet, Meta, and Tesla in generative AI applications like OpenAI’s ChatGPT.
Nvidia also highlighted progress with its upcoming AI chip, Blackwell, announcing that it shipped samples during the quarter and plans to start shipping several billion dollars worth of Blackwell chips in the fourth quarter. The company’s CEO, Jensen Huang, noted that demand for the current-generation Hopper chip remains robust, with supply becoming more available, while anticipation for Blackwell is high.
While Nvidia’s gross margin slipped to 75.1% from 78.4% in the prior quarter, it remains up from 70.1% a year earlier. For the full year, Nvidia expects gross margins to be in the mid-70% range, slightly below analyst expectations of 76.4%. The company’s gaming business, which was previously its main focus, reported a 16% increase in revenue to $2.9 billion, driven by higher shipments of PC gaming cards and game console systems-on-chip (SOCs). Nvidia’s professional visualization and automotive and robotics segments also reported positive growth, with revenues of $454 million and $346 million, respectively.
Additionally, Nvidia approved a $50 billion share buyback program, further reflecting its strong financial position amid ongoing demand for its AI and data center technologies.
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