Nvidia’s Data Centre Business Soars with 400% Growth in AI Technology

Nvidia’s Data Centre Business Soars with 400% Growth in AI Technology

Nvidia recently announced its earnings, meeting high expectations by posting impressive growth figures. The company’s revenue increased by 262% from the previous year, data-centre revenue surged by 427%, and adjusted earnings per share rose by 461%.

In the fiscal first quarter, Nvidia’s revenue of $26 billion exceeded the expected $24.6 billion and aligned with optimistic investor projections of around $26 billion. Moreover, Nvidia achieved a record-high adjusted gross margin of 78.9%, with expectations of a slight decline to 75.5% in the current quarter. Following the earnings report, Nvidia’s shares rose by 6% in after-hours trading, potentially reaching above $1,000 for the first time in the upcoming regular session.

However, the company plans a 10-for-1 stock split in early June. During the earnings call, Nvidia’s leadership highlighted strong demand for the new chip line, Blackwell, with Chief Executive Jensen Huang mentioning anticipated significant revenue from Blackwell this year.

Chief Financial Officer Colette Kress noted that demand for H200 and Blackwell surpassed supply, with expectations of continued high demand into the following year. Despite concerns about a slowdown in Hopper chip sales in anticipation of Blackwell shipments, Huang reassured investors of increasing Hopper demand in the current quarter.

Please note, the above is for educational purposes only and does not constitute advice. You should always contact your advisor for a personal consultation.

* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.

More Articles