Nvidia reported on the results of the fourth fiscal quarter, which exceeded Wall Street’s forecasts for profits and sales, and said that revenues in the current quarter would be better than expected, even despite increased expectations for massive growth. Nvidia shares rose by about 10%.
Nvidia has been a major beneficiary of the tech industry’s recent obsession with large artificial intelligence models running on the company’s expensive GPUs for servers.
In a call with analysts, Nvidia CEO Jensen Huang responded to investor concerns that the company may not be able to sustain such growth or sales for the entire year.
Nvidia’s net profit for the quarter amounted to $12.29 billion, or $4.93 per share, which is 769% more than last year, when it amounted to $1.41 billion, or 57 cents per share. Nvidia’s total revenue grew by 265% year-on-year, driven by strong sales of artificial intelligence chips for servers, in particular the Hopper and H100 line, and
Sales of the company’s data center business, which now accounts for the majority of Nvidia’s revenue, increased by 409% to $18.40 billion. The majority of the company’s data center sales went to large cloud providers. At the same time, Nvidia said that its data center revenues have been affected by recent US restrictions on the export of advanced semiconductors for artificial intelligence to China, transmits CNBC.
The company’s gaming business, which includes graphics cards for laptops and PCs, grew by only 56% year-on-year to $2.87 billion. Video cards for gaming were Nvidia’s main business before its AI chips started to gain momentum, and some of Nvidia’s video cards can be used for AI.
Nvidia’s smaller businesses have not shown the same rapid growth. Its automotive-related business declined 4% to $281 million, while its OEM and other business, which includes crypto chips, grew 7% to $90 million. Nvidia’s business, which produces graphics hardware for professional applications, grew 105% to $463 million.
