Nvidia targets revenue of $28 bn in second-quarter betting on AI

Nvidia has revealed its financial result saying it is targeting revenue of $28 billion for the second quarter of fiscal 2025.
NVIDIA CampusNvidia is betting on the ongoing boom in artificial intelligence (AI) industry for growing its revenue in the coming quarters. IDC says AI software market will grow from $64 billion in 2022 to $251 billion in 2027 at a CAGR of 31.4 percent. Generative AI platforms and applications will generate revenues of $55.7 billion in 2027, IDC report said.

Nvidia expects new AI models that are capable of creating video and engaging in human-like voice interactions to spur more orders for its graphics processors.

“There’s a lot of information in life that has to be grounded by video, grounded by physics. So that’s the next big thing,” Nvidia CEO Jensen Huang told Reuters on Wednesday.

The need for more computing power to train and run AI systems has created demand for Nvidia’s Grace Hopper chips such as the H200. OpenAI used H200 chips in its GPT-4o – a multimodal model capable of realistic voice conversation with the ability to interact across text and image.

Nvidia’s customers, including Google DeepMind and Meta Platforms, have also released AI image or video generation platforms. Nvidia is working with AWS, Google Cloud, Microsoft and Oracle to advance generative AI innovation.

EV maker Tesla has expanded its cluster of processors used in AI training to about 35,000 H100s as it chases autonomous driving, Nvidia’s finance chief Colette Kress said on a post-earnings call on Wednesday.

The automotive industry is expected to be the largest enterprise vertical in Nvidia’s data center business this year.

Meta Platforms, one of the customers of Nvidia, last month increased the midpoint of its 2024 capital expenditure forecast by about $4 billion.

Nvidia CEO Jensen Huang, during a conference call with analysts, said Nvidia’s upcoming Blackwell AI chips will ship in the current fiscal quarter.

Nvidia result

Nvidia reported revenue of $26 billion (up 262 percent from a year ago and up 18 percent sequentially) during the first-quarter of fiscal 2025.

Nvidia’s data center revenue was $22.6 billion, up 23 percent from the previous quarter and up 427 percent from a year ago.

Nvidia’s data center compute revenue was $19.4 billion, up 478 percent from a year ago and up 29 percent sequentially. These increases reflect higher shipments of the NVIDIA Hopper GPU computing platform used for training and inferencing with large language models, recommendation engines, and generative AI applications.

Nvidia’s networking revenue was $3.2 billion, up 242 percent from a year ago on strong growth of InfiniBand solutions, and down 5 percent sequentially due to the timing of supply. Strong sequential Data Center growth was driven by Enterprise and Consumer Internet companies. Large cloud providers deployed NVIDIA AI infrastructure at scale.

Nvidia’s revenue from gaming and AI PC was $2.6 billion, down 8 percent from the previous quarter and up 18 percent from a year ago. The year-on-year increase primarily reflects higher demand. The sequential decrease reflects seasonally lower GPU sales for laptops.

Nvidia’s revenue from professional visualization was $427 million, up 45 percent from a year ago and down 8 percent sequentially. The year-on-year increase primarily reflects higher sell-in to partners following the normalization of channel inventory levels. The sequential decrease was primarily due to desktop workstation GPUs.

Nvidia’s revenue from Automotive and Robotics was $329 million, up 11 percent from a year ago and up 17 percent sequentially. The year-on-year increase was driven primarily by self-driving platforms. The sequential increase was driven by AI Cockpit solutions and self-driving platforms.

Baburajan Kizhakedath