NVIDIA Rides AI Boom to Record-Setting Revenue

NVIDIA income set new information in its newest quarter, fueled by surging demand for its graphics processing items (GPUs)—largely to energy synthetic intelligence and generative AI fashions.

The Silicon Valley tech agency reported whole income of $13.51 billion in its fiscal second quarter ending July 30,representing a 101% enhance versus the identical interval final yr. Income jumped 88% over the earlier quarter.

“A brand new computing period has begun,” NVIDIA founder and CEO Jensen Huang mentioned in an announcement. “Firms worldwide are transitioning from general-purpose to accelerated computing and generative AI.”

Huang known as out the structure surrounding its GPUs, together with networking and swap applied sciences and its CUDA AI software program stack, saying that collectively, the parts “make up the computing infrastructure of generative AI.”

A key driver was NVIDIA’s knowledge heart phase, which manufactures GPUs for high-performance computing and cloud purposes. This division produced report income of $10.32 billion, up 171% yearly and 141% over the prior quarter.

“Robust demand for the NVIDIA HGX platform—primarily based on our Hopper and Ampere GPU architectures—was primarily pushed by the event of enormous language fashions and generative AI,” mentioned Colette Kress, Chief Monetary Officer of NVIDIA. 

Main cloud suppliers like Google, Amazon Net Companies and Microsoft Azure are adopting NVIDIA’s new H100 GPUs to speed up generative AI fashions, mentioned Kress. These fashions embody DALL-E 2 for producing photos from textual content prompts.

The corporate additionally reported that enterprise IT distributors are additionally teaming with NVIDIA to ship its AI platform into extra industries. For instance, NVIDIA partnered with VMware to deliver its AI infrastructure into enterprise clouds.

“Through the quarter, main cloud service suppliers introduced large NVIDIA H100 AI infrastructures,” mentioned Huang. “Main enterprise IT system and software program suppliers introduced partnerships to deliver NVIDIA AI to each business. The race is on to undertake generative AI.”

NVIDIA additional bolstered its AI management by unveiling a collection of recent merchandise and partnerships associated to generative fashions.  This included the launch of NVIDIA AI Workbench for simply creating and customizing generative AI fashions, and the NVIDIA Avatar Cloud Engine to deliver intelligence to online game characters utilizing pure language AI.

Moreover, NVIDIA teamed with companions like ServiceNow, Accenture, Snowflake and Hugging Face to speed up enterprise adoption of generative AI.

The surging demand for NVIDIA’s GPUs additionally lifted the corporate’s gaming income to new heights. Its GeForce RTX 40 Sequence gaming GPUs leverage the identical core structure powering knowledge heart AI. 

All instructed, NVIDIA’s gaming enterprise generated gross sales of $2.49 billion final quarter, up 22% yearly. The gaming phase made up 18% of NVIDIA’s whole income.  

We concentrate on markets the place our computing platforms can present super acceleration for purposes,” Kress mentioned. “Our platforms handle 4 massive markets the place our experience is important: knowledge heart, gaming, skilled visualization, and automotive.”

The corporate mentioned it “is now a full-stack computing firm with data-center-scale choices which might be reshaping business.”

NVIDIA additionally expects robust tailwinds forward. The corporate forecasts income reaching roughly $16 billion subsequent quarter, implying 57% annual development.