Cheerleaders have been crowing about Nvidia’s amazing financial results for its third quarter fiscal 2024. They just announced $57 billion in revenue—a stunning 62% growth over the same quarter last year. The provider further announced a net income of $32 billion on a GAAP basis, representing a 65% year-over-year increase. This performance amid ongoing debate over the AI market’s sustainability is striking. In fact, Nvidia CEO Jensen Huang is telling all of us to stop looking for an “AI bubble” and instead look at the growth.
The surge in Nvidia’s revenue is largely attributed to the strong sales of its Blackwell Ultra GPU, which was unveiled in March and has quickly become the company’s top-performing product. Huang reveals that sales numbers for Blackwell GPU crisps are insane! The interest in cloud GPUs is through the roof as well, as they are all sold out. That’s a common theme with Nvidia’s larger strategy to conquer the data center and AI markets.
She didn’t just win — Blackwell won BIG. Around the same time, Nvidia said it had shipped 50 million of its new H20 data center GPU, specifically engineered for generative AI and high-performance computing. Many analysts were underwhelmed by that number. They pointed to other barriers to entry in selling to China, which have constrained Nvidia’s ability to profit off its stronger offerings available there. Kirsten Kress, Nvidia’s Chief Financial Officer, expressed disappointment over these restrictions but emphasized the company’s commitment to maintaining engagement with both U.S. and Chinese governments.
Nvidia’s gaming division accounted for a whopping $4.2 billion in revenues. At the same time, the pro visualization and motor vehicle industries pumped a healthy $6.8 billion into the mix. In fact, the data center segment had a record-breaking $46.9 billion in revenue. This accomplishment underscores the depth of the company’s stranglehold over this important market.
Huang addressed the prevailing skepticism regarding an AI bubble during Nvidia’s earnings call, stating emphatically, “Forget about the bubble; there is only growth.” His remarks showcase a rising tide of optimism regarding the long-term prospects of AI technologies. Meanwhile, markets are turning against Nvidia. It continues to be dedicated to ensuring a level competitive playing field across the globe.