Nvidia, one of the pioneers of artificial intelligence, announced its first-quarter results for the fiscal year. The company surpassed all estimates in quarterly revenue and boosted its shares to a record high.
Nvidia recently reported quarterly revenue that exceeded all expectations. The company also raised its shares to a record high, indicating continued optimism in artificial intelligence. Nvidia shares rose to $1,005, surpassing the psychologically significant $1,000 mark. The company’s value has increased by 90 percent this year. In this context, Nvidia announced that it will split its shares in a ratio of one to ten, effective June 7.
Nvidia shattered expectations
Nvidia reported revenue of $26.4 billion in the first quarter. The company’s net income was $14.88 billion. Revenue increased by 18 percent compared to the previous quarter and by 262 percent compared to the previous year. Net income saw an incredible increase of 21 percent quarter-over-quarter and 690 percent year-over-year. The tech giant expects to generate $28 billion in revenue in the current quarter. Following these announcements, Nvidia’s market capitalization rose to $2.34 trillion.
The largest revenue came from the Data Center business. Nvidia generated $22.6 billion in revenue from products sold to data centers, marking a 23 percent increase compared to the previous quarter and a 427 percent increase compared to the previous year.
Data center sales, Nvidia’s main revenue driver, include the company’s artificial intelligence GPUs. Companies such as Google, Microsoft, Meta, and Amazon purchase hundreds of thousands of these products. Nvidia’s finance chief, Colette Kress, mentioned that the revenue was largely driven by the Hopper graphics processors, which include the H100 GPU.
Despite Nvidia’s business tripling, there are no signs of slowing down. CEO Jensen Huang stated that the next generation of AI GPUs, called Blackwell, will bring in significant revenue this year. The new chips will be deployed in data centers in the fourth quarter.
Nvidia also highlighted strong sales of network components, which are becoming increasingly important as companies build clusters of tens of thousands of chips that need to be interconnected. Nvidia reported $3.2 billion in network revenue, primarily from its InfiniBand products, more than triple the year-over-year sales.
Interestingly, a year or two ago, before Nvidia became a major player in artificial intelligence, it was known for producing hardware for 3D games. The company announced an 18 percent increase in game revenues this quarter, reaching $2.65 billion. Additionally, the company’s automotive revenue was $329 million, up 17 percent from the previous quarter and 11 percent from the previous year.
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