Good thing Nvidia makes number-crunching GPUs – it'll need them to count its cash

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Unrelenting request for AI accelerators fueled an 843 percent year-over-year surge successful profit for Nvidia successful nan 3 months to July 30.

During that 2nd 4th of its fiscal 2024 year, nan GPU elephantine recorded $6.2 cardinal successful nett income connected revenues of $13.5 billion, double that of nan year-ago quarter.

You mightiness beryllium reasoning Nvidia's figures look beardown this twelvemonth because we're comparing them to a bum erstwhile twelvemonth – and successful 2022 it was complaining astir pandemic-related supply-chain headaches upsetting its business units – but if you look astatine nan numbers, nan semiconductor titan really does look to beryllium connected a rotation lately.

Q2 2019 $3.1B $1.1B
Q2 2020 $2.6B $552M
Q2 2021 $3.9B $622M
Q2 2022 $6.5B $2.4B
Q2 2023 $6.7B $656M
Q2 2024 $13.5B $6.2B

We'll excavation into those numbers a small later this week; for now, here's a summary of today's financial disclosure.

The monolithic uptick successful income was driven successful nary mini portion by beardown request for Nv's Hopper and Ampere GPUs, thousands of which are stitched together, often utilizing its InfiniBand networks, to train ample connection models for illustration OpenAI's GPT-4. This was evidenced by nan spot designer's revenues from its HGX and different datacenter gear, which topped $10.3 cardinal during nan quarter, up 171 percent from nan twelvemonth prior.

"Our unreality work providers drove exceptionally beardown request for HGX systems successful nan 4th arsenic they undertake a generational modulation to upgrade their datacenter infrastructure for nan caller era of accelerated computing and AI," Nvidia CFO Colette Kress said connected Wednesday's net call.

The mostly of these income originated successful nan United States, though Kress was speedy to constituent retired that nan 20-25 percent of datacenter revenues coming from China were wrong humanities norms. Chinese unreality providers are eager to get their hands connected Nvidia accelerators, moreover nan nerfed ones, and person reportedly ordered northbound of $5 cardinal of A800 GPUs for transportation betwixt now and 2024 to substance their AI ambitions. That is, unless US regulators ace down harder connected nan export of AI accelerators to China earlier then.

Kress addressed these concerns and made nan lawsuit that today's rules, which activated last fall, were "achieving nan intended results.” By that we deliberation she's diplomatically saying nan restrictions connected semiconductor exports into China are having an effect, but it's thing to really interest about, and there's really nary request for immoderate changes there.

But location whitethorn beryllium thing to interest about: conscionable past period US lawmakers called connected nan Biden management to ace down further connected nan export of AI hardware into nan Middle Kingdom.

"Given nan spot of request for our products worldwide, we do not expect that further export restrictions connected our datacenter GPUs, if adopted, would person an contiguous worldly effect towards financial results, " Kress said.

"However, complete nan agelong term, restrictions prohibiting nan waste of our datacenter GPUs to China, if implemented, will consequence successful a imperishable nonaccomplishment of an opportunity for nan US manufacture to compete and lead successful 1 of nan world's largest markets."

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But while Nvidia soared connected datacenter income during the quarter, nan US giant's different segments had mixed results. Gaming revenues topped $2.5 cardinal during nan quarter, up 22 percent connected Q2 past year, and up a much humble 11 percent compared to Q1 FY2024.

Kress said nan numbers reflected stronger income of nan company's 40-series desktop and notebook GPUs, peculiarly nan fund focused RTX 4060 it launched successful May.

Nv's master visualization division, which includes its workstation GPUs, fell 24 percent twelvemonth complete twelvemonth during nan quarter, raking successful $379 million, but enjoyed a 28 percent bump compared to Q1 FY2024. It was a akin business for Nvidia's automotive segment, which earned $253 cardinal successful nan quarter, down 15 percent sequentially and up by nan aforesaid separator compared to past year. Nvidia blamed this volatility successful car income connected reduced request successful nan Chinese market.

Looking up to nan adjacent net call, Nvidia doesn't expect nan AI activity to break anytime soon. For Q3 FY2024, nan biz is forecasting revenues of $16 cardinal positive aliases minus 2 percent. Nv's banal is up much than six percent to $503.46 apiece successful after-hours trading.

"Demand for our information halfway level for AI is tremendous and wide based crossed industries and customers," Kress said, adding that nan corp is moving to ramp up accumulation of datacenter GPUs to meet this request complete nan adjacent fewer quarters. ®