Nvidia has announced record revenue for its third fiscal quarter of fiscal 2024, beating Wall Street’s expectations. The company reported Q3 revenue of $18.2 billion, a 206% increase year-over-year and a 34% increase sequentially. Nvidia’s data center segment experienced significant growth, with revenue reaching $14.51 billion, which represented 79% of the total revenue for the quarter.
The significant growth can be attributed to the industry-wide transition from general-purpose to accelerated computing and generative AI. CEO Jensen Huang stated, “Our strong growth reflects the broad industry platform transition from general-purpose to accelerated computing and generative AI.”
Huang went on to explain how various sectors are adopting AI technology. He mentioned that “Large language model startups, consumer internet companies and global cloud service providers were the first movers, and the next waves are starting to build.” Nations, regional CSPs, and enterprise software companies are investing in AI clouds and incorporating AI into their platforms.
Nvidia’s growth engines include GPUs, CPUs, networking, AI foundry services, and Nvidia AI Enterprise software. Huang added, “Nvidia GPUs, CPUs, networking, AI foundry services, and Nvidia AI Enterprise software are all growth engines in full throttle. The era of generative AI is taking off.”
The company’s data center segment includes server GPUs, networking, and AI cloud software. Nvidia’s Q3 results surpassed analysts’ expectations, who had predicted revenue of $16.18 billion for the quarter. Looking ahead, Nvidia’s outlook for the fourth quarter of fiscal 2024 is optimistic, with revenue projected to be $20 billion, plus or minus 2%.
