Driven by AI boom, NVIDIA's profit skyrockets 840% YoY
What's the story
Riding the AI wave, NVIDIA has shattered records with its Q2 2024 revenue of $13.5 billion. The Wall Street darling also made a staggering profit of $6.188 billion, marking an 843% YoY increase. This impressive growth is primarily driven by the surging demand for the company's generative AI chips. NVIDIA anticipates an even better next quarter, with the firm projecting a revenue of $16 billion.
Information
NVIDIA recently achieved trillion-dollar valuation
NVIDIA's impressive second-quarter results come almost three months after the company achieved a trillion-dollar valuation. It is currently the sixth most valued company in the world, only behind Apple, Microsoft, Saudi Aramco, Alphabet, and Amazon.
Details
Revenue from data centers reached an all-time high
Despite challenges in selling desktop and laptop GPUs within a shrinking PC industry, the unprecedented demand for AI chips has propelled NVIDIA to new heights. Data center revenue more than doubled in a quarter to an all-time high of $10.32 billion, while gaming revenue saw a 22% YoY increase to $2.48 billion. The H100, the firm's highest-end AI chip, has been in massive demand among tech companies.
What Next?
NVIDIA will remain the market leader in AI chips: Analysts
NVIDIA is set to launch its next AI chip, the GH200, in mid-2024 and is working diligently to ramp up supply over the next few quarters. Its primary competitors, Intel and AMD, have yet to offer compelling alternatives to NVIDIA's generative AI technology. Analysts predict that NVIDIA will remain the market leader in AI chips and emerge as the most crucial company for civilization over the next five to 10 years.