Tech giant Nvidia shatters its own record, reporting a surprising 265% year-over-year revenue increase for the fourth quarter of 2024.
Graphics processing unit (GPU) giant Nvidia has disclosed a record-breaking revenue for the fourth quarter ended January 28, 2024, driven by its booming artificial intelligence (AI) business.
The company’s net income for the quarter was an impressive $12.29 billion, up 769% compared to last year’s $1.41 billion.
Nvidia Data Center Business Leads the Way
Nvidia’s data center business, which now forms the majority of its revenue, saw a 409% increase to $18.40 billion.
Over half of the data center sales were to large cloud providers. Strong sales of AI chips for servers, particularly Nvidia’s “Hopper” chips such as the H100, contributed significantly to the growth.
Other Business Segments Also Report Growth
Nvidia’s gaming business, which used to be its primary business before AI chips took off, was up 56% year over year to $2.87 billion.
The professional visualization business rose 105% to $463 million, while the automotive business declined 4% to $281 million. The OEM and other business, which includes crypto chips, rose 7% to $90 million.
Positive Financial Outlook for 2025
Nvidia’s financial outlook for the first quarter of fiscal 2025 is positive, with expected revenue of around $24.0 billion, surpassing analysts’ expectations. The company’s shares rose about 10% in extended trading following the earnings announcement.
Nvidia’s CEO, Jensen Huang, expressed confidence in the company’s continued growth, citing the high demand for GPUs due to generative AI and an industry-wide shift. He also mentioned that the conditions are excellent for growth in 2025 and beyond.
Despite ongoing supply chain challenges, Nvidia’s financial performance paints a picture of a company riding the wave of the AI revolution. With its cutting-edge technology and unwavering commitment to innovation, Nvidia seems poised to continue its reign as the undisputed leader in the AI chip market.
