Nvidia quarterly profit soars to $12.3 billion: ‘AI hit tipping point’

Nvidia Quarterly Results: Silicon Valley chip titan Nvidia said its profit soared to $12.3 billion in the recently ended quarter. Record high revenue was driven by demand for its chips to power artificial intelligence, it said as the company reported record revenue of $22.1 billion in the quarter and record high revenue of $60.9 billion for the fiscal year. During the same period a year ago, profit stood at $1.4 billion, while revenue was $6 billion, the company said.

“Accelerated computing and generative AI have hit the tipping point,” Nvidia chief executive Jensen Huang said, adding, “Demand is surging worldwide across companies, industries and nations. Our Data Center platform is powered by increasingly diverse drivers. Vertical industries – led by auto, financial services and healthcare – are now at a multibillion-dollar level.”

Nvidia Quarterly Results: How is Nvidia’s data centre computing unit performing?

Nvidia unit specializing in data center computing hit a record profit of $18.4 billion in the quarter. This is more than quadruple the amount from the same period a year earlier, the company said as it expects total revenue of $24 billion in the current quarter.

Nvidia Quarterly Results: Nvidia on role of AI

Nvidia chief executive Jensen Huang said that the company’s chips are at the heart of datacenters transforming into “AI generation factories” .

“The reason for sovereign AI has to do with the fact that the language, the knowledge, the history, the culture of each region are different and it belongs to them,” Jensen Huang said on the earnings call, adding, “They would like to use their data to create their own digital intelligence.”

Nvidia Quarterly Results: China reset needed?

Nvidia paused shipments of restricted products to China but the company said that it is exploring selling alternatives that don’t require licenses.

“We reconfigured our products in a way that is not software hackable, and that took some time,” Jensen Huang said, continuing, “So we reset our product offering to China and now we’re sampling to customers in China.”

Following the release of the quarterly results, Nvidia shares shot up more than eight percent to $732.99.