Despite these concerns, Nvidia's CEO, Jensen Huang, is optimistic about the company's future, particularly in the data center sector. He believes that the company's growth is part of a long-term industry transition towards accelerated computing and generative AI. While acknowledging that growth rates may eventually slow down, as seen with Zoom, he is confident that Nvidia can sustain its current level of growth.
Key takeaways:
- Nvidia reported a 101% year-over-year growth with a revenue of $13.5 billion for the quarter, driven by high demand for its GPU chips to run large language models and other AI-fueled workloads.
- Data center compute revenue nearly tripled year on year, primarily due to accelerating demand from cloud service providers and large consumer internet companies for Nvidia's HGX platform.
- Nvidia's biggest growth area is in the data center, with plans to add over 300 new data centers in the coming years, which will likely drive further growth for the company.
- Despite the impressive growth, there are concerns that Nvidia could follow the trajectory of Zoom, which experienced a sharp decline in growth after five quarters of rapid expansion, raising questions about the sustainability of Nvidia's current growth rate.