2023’s AI Boom Has Provided NVIDIA Massive Profits With +206% Earnings Year-Over-Year

2023’s AI Boom Has Provided NVIDIA Massive Profits With +206% Earnings Year-Over-Year

We wouldn’t blame you if you thought ChatGPT and AI exploded in fame last year, we’re here to remind you it’s not. Lots of things have happened since then, and the biggest winner of them all is probably NVIDIA – as they’re providing virtually all AI companies with the chips required to run these extremely demanding workloads.

Earlier this week, NVIDIA published its financial results for Q3 of fiscal year 2024, which ended on October 29, 2023. The company reported a record $18.12 billion in revenue in the 3-month period, and it’s probably hard for you to grasp the concept of such numbers. Here’s a reference: the revenue represents a staggering +206% increase year-over-year, providing a net income of $9.243 billion, which is an insane +1,259% compared to the same quarter last year.

“Our strong growth reflects the broad industry platform transition from general-purpose to accelerated computing and generative AI,” said Jensen Huang, founder and CEO of NVIDIA. “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,” he continued.

Predictably, AI is the biggest contributor to the company’s newfound income, dominating 80% of the share. The remaining 20% is shared among gaming, professional, automotive, and OEM profits, with the gaming department in particular still gaining a near two-fold increase over the same period last year – thanks to the launch of RTX 40 series GPUs.

Source: Tom’s Hardware

Pokdepinion: Next year probably won’t be as good as this one, knowing that major AI providers are looking into in-house chips to reduce reliance.