Nvidia has once again demonstrated the transformative power of AI. The company's Q2 2024 earnings report revealed a staggering $13.5 billion in revenue, largely attributed to the surging demand for its generative AI chips – record-setting demand that overshadowed the challenges posed by a dwindling PC industry.
Nvidia's data center revenue alone stood at a whopping $10.32 billion, marking a more than two-fold increase in just a quarter. The resultant profit: $6.188 billion, up 843% year over year.
While the gaming sector dipped from its pandemic highs, it still managed to register a 22% year-over-year growth, amounting to $2.48 billion in revenue. Nvidia remains optimistic about the gaming sector, hinting at potential upgrades for gamers in the near future.
Looking ahead, Nvidia projects a revenue of $16 billion for the next quarter, with AI continuing to be the primary driver. The company's next AI chip, the GH200, is slated for a mid-2024 release. As Nvidia gears up to meet the escalating demand, its competitors (Intel and AMD) have yet to present a formidable challenge in the realm of generative AI silicon.
This AI-centric growth trajectory underscores an obvious trend in the tech landscape. Is there an investable thesis here? That's a question for your financial advisor.
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ABOUT SHELLY PALMER
Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named he covers tech and business for , is a regular commentator on CNN and writes a popular . He's a , and the creator of the popular, free online course, . Follow or visit .
