NVIDIA (NVDA) surpassed Wall Street’s expectations for its fiscal first quarter on record data-center sales late Wednesday. NVIDIA’s financial results for the first quarter of fiscal year 2024 reported impressive quarterly revenue of $7.19 billion, showing a substantial 19% increase compared to the previous quarter. Looking ahead, NVIDIA has projected a strong revenue outlook for the second quarter of fiscal year 2024, estimating it to reach $11.00 billion.
In the fiscal quarter that ended April 30, the Santa Clara, Calif.-based corporation earned an adjusted $1.09 per share on sales of $7.19 billion.
Record breaking earnings from NVIDIA’s data center sector
NVIDIA’s data-center sales increased 14% year on year to $4.28 billion in the first quarter.
This expansion indicated significant demand for its graphics processing units and related technology from large consumer internet companies and cloud service providers. Customers are employing its processors for generative AI and other artificial intelligence applications.
Meanwhile, sales of NVIDIA’s gaming chips fell 38% year on year to $2.24 billion in the first quarter. The drop was caused by poorer demand because of the macroeconomic recession, as well as lower shipments to normalize channel inventory levels.
“The computer industry is going through two simultaneous transitions — accelerated computing and generative AI,” stated NVIDIA founder and CEO Jensen Huang.
He also mentioned in his post that trillions of dollars in installed global data center infrastructure will shift from general purpose to accelerated computing as businesses race to incorporate generative AI into every product, service, and business process.
NVIDIA collaborations for AI initiatives
NVIDIA also launched four inference platforms combining their software with advanced processors and partnered with Google Cloud to offer the new NVIDIA L4 Tensor Core GPU. It introduced programs like NVIDIA AI Foundations for custom language models, unveiled the cuLitho software library for semiconductor manufacturing, and expanded partnerships with leading cloud providers.
It collaborated with ServiceNow and Medtronic for generative AI applications in enterprise IT and medical devices, respectively. NVIDIA joined forces with Dell Technologies in Project Helix to deliver comprehensive generative AI solutions. Additionally, it integrated NVIDIA AI Enterprise software into Microsoft’s Azure Machine Learning to accelerate AI initiatives.
Through Wednesday’s close, NVIDIA’s stock had soared 109% year to date due to investor enthusiasm for its key role in the emerging artificial intelligence area.
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