NVIDIA will split data center revenue to reassure investors
NVIDIA is switching up how it shares its data center revenue, aiming to show investors that it's not just riding on tech giants like Meta, Amazon, Google, and Microsoft.
These companies use tons of NVIDIA chips for their AI projects, but with about $725 billion going into AI this year (about twice as much as last year), some investors are worried about whether this growth is sustainable.
ACIE grew 31% versus hyperscalers 12%
Now, NVIDIA will break out its data center revenue into two groups: "hyperscalers" (the big tech names) and "ACIE" (AI Clouds, Industrial, and Enterprise).
CEO Jensen Huang pointed out that ACIE grew 31% last quarter, way faster than the 12% from hyperscalers, and he believes ACIE could be larger over time than the big tech group.
This shift is all about showing NVIDIA can keep growing even if hyperscaler spending slows down.