Nvidia makes record $6.1 bn in profit as gaming becomes mainstream
Graphics chip giant Nvidia made $6.188 billion in profit for its Q2 earnings -- up a massive 843 per cent (year-over-year), as gaming become mainstream.
IANS
Aug 24, 2023 10:55
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San Francisco, Aug 24 (IANS) Graphics chip giant Nvidia made $6.188 billion in profit for its Q2 earnings -- up a massive 843 per cent (year-over-year), as gaming become mainstream.
The company reported revenue of $13.51 billion for the quarter ended June 30, up 101 per cent from a year ago and up 88 per cent from the previous quarter. Gaming revenue was up 22 per cent (year-over-year) to reach $2.48 billion.
The company reported data centre revenue of $10.32 billion, up 171 per cent from year ago.
“A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI,” said Jensen Huang, founder and CEO of Nvidia.
The company expects revenue for the next quarter to be $16 billion.
“There is tremendous demand for Nvidia accelerated computing and AI platforms. Our supply partners have been exceptional in ramping capacity to support our needs,” said Colette Kress, Executive Vice President and Chief Financial Officer.
“We expect supply to increase each quarter through next year. By geography, data centre growth was strongest in the U.S. as customers direct their capital investments to AI and accelerated computing,” she informed.
Consumer internet companies also drove the very strong demand for Nvidia.
“Their investments in data centre infrastructure purpose-built for AI are already generating significant returns. For example, Meta recently highlighted that, since launching reels and AI recommendations, have driven a more than 24 per cent increase in time spent on Instagram,” Kress informed.
In May, Nvidia temporarily became a $1 trillion company in the generative artificial intelligence (AI) tools.
