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Nvidia reports record Q2 results driven by surging data center demand

Aug 24, 2023 - venturebeat.com
Nvidia has reported record Q2 revenue of $13.51 billion for fiscal 2024, a 101% increase year-over-year, with its data center segment growing 171% annually to $10.32 billion. The company's rapid product development, strong alliances, and ability to attract software developers have contributed to its growth in AI and large language model (LLM) adoption. Gross margin also increased to 71.2% in Q2, up from 45.9% a year ago, with profits being reinvested into R&D.

Data center revenue, which includes server GPUs, networking, and AI cloud software, has nearly tripled over the past five quarters to $10.3 billion, making it Nvidia's largest segment. The company is investing heavily in next-generation platforms like its Hopper architecture to maintain its lead in AI workload accelerated computing. Nvidia reported $2.04 billion in R&D spending in Q2 FY2024, up 10% from $1.82 billion in Q2 FY2023, demonstrating its commitment to innovative technologies.

Key takeaways:

  • Nvidia reported record Q2 revenue of $13.51 billion, up 101% year-over-year, with its data center segment growing 171% annually to $10.32 billion, representing 76% of total revenue.
  • Nvidia is proving to be a key player in AI innovation, with rapid product development, strong alliances, and a growing platform attracting software developers. This strategy has led to a 229% growth in total revenue over the past 5 quarters.
  • Data center revenue, which includes server GPUs, networking, and AI cloud software, has nearly tripled over the past five quarters to $10.3 billion, becoming Nvidia's largest segment.
  • Nvidia is heavily investing in R&D for next-generation platforms like its Hopper architecture to maintain its lead in AI workload accelerated computing. The company reported $2.04 billion in R&D spending in Q2 FY2024, up 10% from $1.82 billion in Q2 FY2023.
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