Graphics processing powerhouse Nvidia announced its financial results for the fourth quarter of the fiscal year 2024, ending on January 28th. During this quarter, Nvidia achieved a record-breaking revenue of $22.1 billion, marking a 22% increase from the previous quarter and an astonishing 265% growth compared to the same period last year. Net income reached $12.285 billion, representing a 33% increase from the previous quarter and an impressive 769% growth from the same period last year, with earnings per share standing at $5.16.
The surge in sales was primarily driven by the Artificial Intelligence (AI) segment, with Nvidia’s data center platform experiencing a remarkable 409% increase in revenue. This outstanding performance led to a post-market stock price surge of 9.07%, reaching a new high of $735.95.
Nvidia’s data center platform utilizes various GPU products to create accelerated computing solutions, boasting improved efficiency with fewer servers. It caters mainly to large enterprises and supercomputing centers, supporting applications such as AI training, AI inference, scientific computing, and virtual desktop infrastructure.
AI played a pivotal role in boosting Nvidia’s data center business, contributing $18.4 billion in revenue for the quarter, a substantial 409% increase compared to the same period in the previous year. This category accounted for 83% of Nvidia’s total revenue.
Nvidia’s other revenue categories included $2.9 billion from gaming, a 56% year-over-year growth, $460 million from professional visualization, marking a 105% growth, and $280 million from the automotive sector, experiencing a 4% decline.
The global AI wave, catalyzed by OpenAI’s ChatGPT released in November 2022, has significantly increased demand for GPUs supporting parallel processing and emphasizing efficiency. Nvidia’s founder and CEO, Jensen Huang, stated that accelerated computing and generative AI have reached a turning point, witnessing a surge in demand from countries, industries, and companies worldwide. The substantial growth in their data center platform results from the increasing demand for data processing, training, and inference from major cloud service providers, GPU specialists, enterprise software, and consumer internet companies.
Additionally, vertical industries, including automotive, financial services, and healthcare, have collectively reached an economic scale of several billion dollars.
While Wall Street analysts had high expectations for Nvidia, the financial results surpassed those expectations, causing a more than 2% intraday stock price decline to rebound significantly in after-hours trading.