NVIDIA Achieves Record-Breaking Q3 Revenue, Foresees Growth Momentum

In a staggering display of exponential growth, NVIDIA has reported an astounding third-quarter revenue of $18.12 billion, marking a 206 percent increase from the previous year and a 34 percent surge from the preceding quarter.
NVIDIA CampusThe cornerstone of this success was the Data Center division, which achieved a record-breaking revenue of $14.51 billion, up 279 percent from a year ago and 41 percent from the previous quarter. This surge was fueled by robust sales of the NVIDIA HGX platform, meeting the global demand for large language model training, recommendation engines, and generative AI applications.

Data Center compute revenue soared by 324 percent year-on-year and 38 percent sequentially, predominantly propelled by the strong adoption of the Hopper GPU architecture-based HGX platform by cloud service providers, consumer internet companies, and enterprises.

While acknowledging significant sales of the Ampere GPU architecture-based Data Center products, NVIDIA pointed out a sequential decline, signaling a shift as the architecture reaches its culmination. The company introduced initial revenue from the L40S GPU and the GH200 Grace Hopper Superchip, catering to diverse customer segments.

In the Gaming sector, revenue soared to $2.86 billion, up 81 percent from a year ago and 15 percent sequentially. This robust growth was driven by increased partner sell-in, following normalized channel inventory levels, and heightened demand for the GeForce RTX 40 Series GPUs during the back-to-school season and the onset of the holiday period.

Professional Visualization revenue reached $416 million, reflecting a 108 percent increase from a year ago and a 10 percent rise sequentially. The surge was attributed to escalated partner sales, balanced inventory levels, and amplified demand for enterprise workstation and notebook workstations utilizing the Ada Lovelace GPU architecture.

Automotive revenue witnessed a year-on-year uptick of 4 percent, reaching $261 million, while also showing a sequential increase of 3 percent. This growth primarily stemmed from heightened sales of auto cockpit solutions and self-driving platforms, signaling an increasing demand for NVIDIA’s technology in the automotive sector.

Jensen Huang, NVIDIA’s founder and CEO, in its earnings report, highlighted the company’s diverse growth engines, stating, “NVIDIA GPUs, CPUs, networking, AI foundry services, and NVIDIA AI Enterprise software are all growth engines in full throttle. The era of generative AI is taking off.”

Looking ahead, NVIDIA projected a strong fourth quarter for fiscal 2024, anticipating revenues of around $20.00 billion, plus or minus 2 percent. Jensen Huang outlined the company’s anticipation of sustained growth, citing various sectors including nations, regional cloud service providers, enterprise software companies, and industries embracing custom AI solutions as pivotal growth catalysts.

Baburajan Kizhakedath