Nvidia is seeing huge growth and profits thanks to the AI boom. This is now made clear by Nvidia’s annual financial statements. Nvidia’s H100 accelerator is very popular with many companies.
Those: Nvidia
In the last quarter, Nvidia made a real leap in sales compared to last year. The group was able to record growth of a whopping 265 percent. Quarterly sales jumped from $6 billion to $22.1 billion. A significant portion of this increase, 83 percent, comes from the data center division. Apparently, many companies are continuing to rely more on Nvidia’s technology and are investing in solutions for their data centers. Actual sales results far exceeded Nvidia’s expectations. It was originally forecast to generate $20 billion in sales, but the company actually managed to generate $22.1 billion.
Amid a vibrant market and an AI boom, Nvidia has not only achieved remarkable sales but also posted significant profits. Of the $22.1 billion in sales, about $12.3 billion remained as net profit. These figures underline Nvidia’s ability to generate significant profits despite high investments. It is particularly worth mentioning that Nvidia is currently able to largely determine the prices of its AI accelerators itself. This gives the company a certain competitive advantage, as there is currently little serious competition in this area. For the entire 2024 financial year, Nvidia can look back on an impressive balance sheet: sales of almost $61 billion and a profit of $29.8 billion. These numbers highlight the key role Nvidia’s technology plays in today’s business world, especially in the age of the AI boom.
Gaming division remains stable
Nvidia’s former driving force GeForce gaming graphics cards achieved lower sales, but remains generally stable. Sales of GPUs generated $2.9 billion in sales. Compared to the previous quarter, this represents an increase of around 56 percent.
Nvidia can therefore be positive about the future of its company. The release of the improved H200 chip is just around the corner and the development of the B100 semiconductor for even more demanding AI applications is also progressing on schedule. The chip manufacturer is forecasting sales of $24 billion for the current quarter. This led to a positive reaction from investors, with the share price temporarily rising to over $745 in after-hours trading.