Nvidia's revenue explodes on strong demand for AI chips

Nvidia's third-quarter 2023 business results beat investor expectations for both revenue and profit thanks to demand for AI chips exceeding supply.

Specifically, Nvidia has just announced its third quarter 2023 business results. In the three months ending October 29, the company's revenue increased by 206% compared to a year ago, to $18.12 billion. Net income reached $9.24 billion, up from $680 million in the same period in 2022.

Nvidia’s data center revenue rose 279% to $14.51 billion, half of which came from cloud infrastructure providers like Amazon, with the rest coming from large enterprises and Internet companies.

The gaming segment contributed $2.86 billion in revenue, up 81%. Nvidia forecasts revenue for the final quarter of the year to reach about $20 billion, up 231%.

Nvidia had a booming quarter thanks to strong demand for AI chips.

Last quarter, Nvidia introduced the GH200 GPU, which has more memory than the H100 and adds an Arm processor. Despite its high price tag, the H100 has seen strong demand. The company revealed that Iris Energy, the owner of Bitcoin mining farms in Australia, bought 248 H100 GPUs for $10 million, or about $40,000 per unit.

Two years ago, PC gaming GPU sales were Nvidia's biggest source of revenue. Now, however, the bulk of its revenue comes from server farms.

The launch of OpenAI’s ChatGPT in 2022 has many companies looking to integrate similar generative AI capabilities into their software, thus strengthening demand for Nvidia’s GPUs. Despite competition from AMD and US export restrictions, the company’s results remain quite optimistic.

Chipmaker Nvidia is looking to ramp up supply next year. Shares of Nvidia have surged 241% this year, beating the S&P 500's 18% gain over the same period.

Source: https://baoquocte.vn/doanh-thu-cua-nvidia-bung-no-nho-nhu-cau-lon-tu-chip-ai-251103.html