NVIDIA ANNOUNCES RECORD REVENUES IN THE THIRD QUARTER FISCAL 2024
NVIDIA has announced record financial results for the third quarter fiscal 2024, driven by strong demand for artificial intelligence technologies. The company continues to lead in innovation and performance in its Data Center and gaming segments. CEO Jensen Huang highlighted that the era of AI is transforming every industry, company, and country.
Last Update
22.11.24
Revenues Increase 94% Year-over-Year, Net Profit Doubles
On November 20th, NVIDIA, a major American semiconductor company, announced its results for the period from August to October 2024, reporting record revenues of $35.1 billion, an increase of 94% compared to the same period last year, and a net profit of $19.31 billion, more than double the $9.2 billion from the third quarter of fiscal year 2023. This performance was driven by the continued strong demand for semiconductors for artificial intelligence (AI).
The AI-related Data Center segment, in particular, achieved sales of $30.8 billion, 112% more than the same period last year, representing 88% of total revenues. The gaming segment also experienced a 15% increase in sales, reaching $3.3 billion.
NVIDIA, whose main products are GPUs (graphics processing units) optimized for AI data processing, has set new records for revenues and net profit for the sixth consecutive quarter. CEO Jensen Huang stated: \"The era of AI is in full swing, driving a global shift toward NVIDIA computing. The demand for Hopper and the anticipation for Blackwell, now in full production, are incredible as foundational model creators scale pre-training, post-training, and inference.\"
For the next quarter, NVIDIA projects revenues of around $37.5 billion, reflecting the continued strong demand for AI computing technologies. Huang also highlighted the company's focus on being at the forefront of autonomous AI, known as 'Agentic AI', foreseeing its impact across all industries.
Expected Future Impact
NVIDIA's financial results indicate that the expansion of the generative AI market will continue. The company is positioning itself as a key enabler of autonomous AI technologies, providing high-performance computing platforms like the Hopper and Blackwell GPUs, and developing AI software frameworks that support the development of complex AI agents.
Despite supply chain challenges limiting delivery capacity, NVIDIA is working closely with its partners to increase production and meet the unprecedented demand. These efforts are expected to drive the company's continued growth in the coming quarters.
Additionally, initiatives like EMBark, which revolutionize large-scale recommendation system training, demonstrate NVIDIA's commitment to innovation and leadership in the AI sector.
NVIDIA's financial results indicate that the expansion of the generative AI market will continue. Given the company's dominant share in the AI sector, it is likely that NVIDIA's performance will remain strong for some time.
Should You Invest in NVIDIA?
NVIDIA's stock continues to be an attractive target for investors, given its leading position in the AI market and its solid growth track record. However, it's crucial to consider that the stock market can react volatilely to news about supply chain challenges or growth expectations.
Although the shares dipped slightly following the announcement of the third-quarter results, many analysts believe that the underlying demand for NVIDIA's products and its central role in the AI revolution support positive long-term prospects. As always, it's advisable to carefully evaluate your personal investment strategy and consider diversification to manage risk.