Nvidia announced its record revenue and profit for the three months of November 2023, 12/2023 and January 2024. More specifically, the group’s revenue in this period reached $22.1 billion, an increase of 265% over the same period last year. Business profits reached $12.3 billion, up to… 769%, a terrible figure.
Looking at these numbers, you can see how the enterprise server processing chip range, including Nvidia‘s AI research, training and processing chips, is becoming a terrible money printer. Nvidia’s business chips and data centers reached $18.4 billion in the past three months, accounting for 83% of the company’s total revenue in the last quarter, up 409% from the same period in 2023.
Between February and April 2023, Nvidia forecasted revenue to reach $24 billion, about 2 percent higher than market analysts predicted.
CEO Jensen Huang said: “Accelerated computing and content-generating AI are peaking. The demand for this technology is rising all over the world, from companies, industries, and even nations.”
He added, “Basically, the market conditions are great for continued growth in 2024, then 2025 and the years that follow.”
As has been said, thanks to the AI fever and the universal GPGPU products that serve dynamic real counting, Nvidia has become the clearest winner in the AI Fever. The corporation’s capitalization also exploded with the confidence of the markets as well as the investors. At the time of sharing this information, Nvidia’s capitalization was $1.67 trillion, ranked sixth on the list of the world’s most capitalized corporations. First and second on this list are Microsoft (2.988 trillion dollars) and Apple (2.815 billion dollars), respectively.
But there’s a market where Nvidia has to accept a decline in revenue. That’s China. Previously, Nvidia’s sales in China ranged from 20 to 25 percent when it comes to data center processing. But this number has fallen “very sharply” between 11/2023 and 1/2024, as a result of new US sanctions to block China’s access to the most powerful AI processor chips today, all created by American corporations like AMD and Nvidia.
CEO Jensen Huang said Nvidia has “reset” its product range in the Chinese market, and has begun to have products that strictly comply with U.S. government regulations on processing chip power as well as memory bandwidth:
“Remember, basically, the US government wants to limit the power of Nvidia’s latest chips to the Chinese market. At the same time, the US government still wants to see Nvidia succeed in business in the Chinese market. We’ve adjusted the products we sell in this market, and we’re sending samples to our partners here. We will try our best to compete and succeed in a market that is very limited in product configuration.”
