NVIDIA Soars on Generative AI, Reports $6 Billion Profit
NVIDIA on Wednesday reported financial results for the second quarter ending on July 30 2023. The company’s revenue for this quarter soared to $13.51 billion, marking a phenomenal 101% increase compared to the same period last year and an impressive 88% rise from the previous quarter. The Data Center segment stood out as a driving force, contributing a staggering $10.32 billion in revenue for this quarter reflecting a remarkable 171% growth from the same period last year and an astounding 141% surge from the previous quarter. The company, who is the main supplier of A100 and H100 AI chips used to build and run AI applications, raked in $ 6.19 billion in profit in Q2 as compared to $ 656 million last year in corresponding quarter, up 843%. “A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI,” said Jensen Huang, founder and CEO of NVIDIA. Huang also highlighted noteworthy industry developments during this quarter. Major cloud service providers unveiled significant NVIDIA H100 AI infrastructures, and key enterprise IT system and software providers forged partnerships to bring NVIDIA AI capabilities to various industries. NVIDIA predicts that its revenue for the third quarter of the fiscal year will be around $16 billion, surpassing the estimated $12.61 billion by Refinitiv. NVIDIA’s projection indicates a remarkable 170% increase in sales for this quarter compared to the same period last year. “We expect sequential growth to be driven largely by data center,” said NVIDIA CFO Colette Kress on the earnings call. Following this announcement, the company’s stock price surged by 8.5 per cent in after-hours trading. NVIDIA’s gaming division, once the company’s core focus, witnessed a notable 22% surge in revenue compared to the previous year, reaching an impressive $2.49 billion. This growth outperformed expectations, surpassing the average estimate of $2.38 billion. NVIDIA  recently announced its latest innovation, the next-generation NVIDIA GH200 Grace Hopper platform. This platform centers around an innovative Grace Hopper Superchip, featuring the world’s pioneering HBM3e processor. The new setup is a game-changer, offering 3.5 times more memory capacity and 3 times more bandwidth than the current version. This setup includes a single server with 144 Arm Neoverse cores, delivering eight petaflops of AI performance and featuring 282GB of the latest HBM3e memory technology.
Data Center segment stood out as a driving force, contributing a staggering $10.32 billion in revenue for this quarter
NVIDIA on Wednesday reported financial results for the second quarter ending on July 30 2023.
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["NVIDIA H100", "programming_languages:R", "AI", "A100", "RPA", "innovation", "RAG", "generative AI", "R"]
["AI", "generative AI", "RAG", "R", "RPA", "innovation", "NVIDIA H100", "A100", "programming_languages:R"]
Siddharth is a media graduate who loves to explore tech through journalism and putting forward ideas worth pondering about in the era of artificial intelligence.