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NVIDIA announced its fiscal year earnings for January 2024 on February 21st. The annual revenue reached $60.9 billion, marking a 126% increase from the previous year, with operating profit soaring to $33 billion, an increase by 7.8 times.

For the fourth quarter (November to January), the revenue was $22.1 billion, a 265% increase year-over-year, exceeding the company’s forecast of $20 billion. The operating profit for the quarter reached $13.6 billion, a tenfold increase, with an operating margin surpassing 61%.

In response to the strong performance, the after-hours stock price surged by over 7%. The sales forecast for the February to April period is set at $24 billion (±2%), with a confident outlook stating, “We will continue to grow in 2024, 2025, and beyond.”

Half of data center sales are for the cloud

Demand for data centers continues to drive NVIDIA’s performance.

Data center revenue has been increasing quarterly, with the third quarter reaching $14.51 billion, a 279% increase. The previous quarter saw revenue of $10.32 billion, a 171% increase, and the first quarter reported $4.28 billion, a 14% increase.

In the latest quarter, more than half of the data center revenue came from major cloud providers.

Jensen Huang, the founder and CEO of NVIDIA, stated, “Accelerated computing and generative AI are at a turning point. There is a surge in demand worldwide across corporations, industries, and nations.” He claims that the data center installation base amounts to approximately $1 trillion and predicts the emergence of data centers worth $2 trillion that will power global software over the next four to five years.

Will NVIDIA Continue Its Dominance?

The demand for data centers is expected to grow further. With the expansion of generative AI, the demand for high-performance semiconductors is surging, and NVIDIA is extending its lead in securing orders.

On March 19th, Hitachi, Ltd. announced a collaboration with NVIDIA in developing AI services. The partnership aims to digitize railways and infrastructure facilities in virtual spaces to improve maintenance efficiency.

Moreover, NVIDIA and Chinese EV companies have announced an expansion of their partnership to enhance autonomous driving technology.

While NVIDIA’s dominance seems likely to continue for the time being, we will keep a close eye on the company’s developments.