Nvidia records record revenue of $57 billion and reassures about AI 'bubble'
Kyiv • UNN
Nvidia reported revenue of $57 billion in the third quarter, up 62% year-over-year. The company's GAAP net income was $32 billion, exceeding Wall Street expectations.
Nvidia founder and CEO Jensen Huang set an optimistic tone in the company's third-quarter earnings report. And, judging by the company's results, there is every reason for this - Nvidia reported revenue of $57 billion in the third quarter, which is 62% more than in the same quarter last year, writes UNN with reference to TechCrunch.
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The company's GAAP net income was $32 billion, up 65% year-over-year. Revenue and profit figures exceeded Wall Street expectations.
The revenue picture shows that the company is thriving largely due to its data center business. Nvidia's data center business revenue reached a record $51.2 billion, up 25% from the previous quarter and 66% from a year ago. The remaining $5.8 billion of Nvidia's revenue came from the gaming business with $4.2 billion in revenue. This is followed by sales in professional visualization and automotive.
Nvidia CFO Colette Kress, in a message to shareholders, noted that the growth of its data center business is driven by accelerated computing, powerful AI models, and agency applications. During the third-quarter earnings call, Kress reported that the company announced projects to build factories and AI infrastructure totaling 5 million GPUs last quarter.
"This demand spans all markets: communications service providers, government organizations, modern construction companies, and supercomputing centers, and includes many landmark projects," Kress said.
Blackwell Ultra, a GPU introduced in March and available in several configurations, has performed particularly well and is now a leader in the company. According to the company, previous versions of the Blackwell architecture have also been in high demand, which continues.
Huang said Blackwell GPU sales are "off the charts."
"Blackwell sales are off the charts, and cloud GPUs are sold out," Huang said in the company's third-quarter report. "Demand for computing power continues to accelerate and grow, both in training and inference, with each growing exponentially. We have entered a favorable AI development cycle. The AI ecosystem is rapidly scaling - new foundational model developers, AI startups, in more industries and in more countries. AI is everywhere, doing everything at once."
Kress noted that the company's H20 shipments - data center GPUs designed for generative AI and high-performance computing - totaled 50 million, a disappointing result due to the inability to sell to China.
"Significant purchase orders this quarter never materialized due to geopolitical issues and increasing competition in the Chinese market," Kress noted. "While we are disappointed with the current situation that prevents us from supplying more competitive data center computing solutions to China, we are committed to continued engagement with the US and Chinese governments and will continue to advocate for America's ability to compete globally."
The publication notes that Nvidia forecasts further growth with projected revenue of $65 billion in the fourth quarter, which contributed to the company's stock price rising by more than 4% after the close of trading.
"Many people talk about an AI bubble," Jensen said during the company's earnings call. "In our view, we see something completely different."