Nvidia has revealed its financial result for the second-quarter of 2024 and key achievements that will drive business growth in coming years.
Nvidia has reported revenue of $30 billion for the second quarter ended July 28, 2024, up 15 percent from the previous quarter and up 122 percent from a year ago.
Nvidia’s data center revenue was $26.3 billion, up 16 percent from the previous quarter and up 154 percent from a year ago.
Nvidia’s gaming and AI PC revenue was $2.9 billion, up 9 percent from the previous quarter and up 16 percent from a year ago.
Nvidia’s Professional Visualization revenue was $454 million, up 6 percent from the previous quarter and up 20 percent from a year ago.
Nvidia’s Automotive and Robotics revenue was $346 million, up 5 percent from the previous quarter and up 37 percent from a year ago.
Nvidia is expecting revenue of $32.5 billion for the third quarter of fiscal 2025.
Nvidia’s biggest customers – Microsoft, Alphabet, Amazon, and Meta Platforms – are expected to incur more than $200 billion in capital expenditures in 2024, most of which is meant for building AI infrastructure, Reuters news report said.
Data Center
The sales growth in Nvidia’s Data Center business was driven by demand for Hopper GPU computing platform for training and inferencing of large language models, recommendation engines, and generative AI applications. Inference drove more than 40 percent of Nvidia’s Data Center revenue over the trailing four quarters.
Cloud service providers represented roughly 45 percent of Data Center revenue, and more than 50 percent came from consumer internet and enterprise companies.
Demand is coming from frontier model makers, consumer Internet services, and companies and start-ups building generative AI applications for consumers, advertising, education, enterprise and healthcare, and robotics. Developers desire Nvidia’s ecosystem and availability in every cloud.
The Nvidia H200 offers 40 percent more memory bandwidth compared to the H100.
Data Center compute revenue was $22.6 billion, up 162 percent from a year ago and up 17 percent sequentially.
Networking revenue was $3.7 billion, up 114 percent from a year ago driven by InfiniBand and Ethernet for AI revenue, which includes Spectrum-X ethernet platform. Networking revenue includes a doubling of Ethernet for AI revenue.
Nvidia has shipped customer samples of Blackwell architecture. Nvidia executed a change to the Blackwell GPU mask to improve production yield. Blackwell production ramp is scheduled to begin in the fourth quarter and continue into fiscal 2026.
In the fourth quarter, Nvidia expects to ship several billion dollars in Blackwell revenue. Hopper shipments are expected to increase in the second half of fiscal 2025.
Nvidia GB200 NVL72 system with the fifth-generation NVLink enables all 72 GPUs to act as a single GPU and deliver up to 30x faster inference for LLM’s workloads.
Nvidia is working with most of the Fortune 100 companies on AI initiatives across industries. A range of applications are fueling growth, including AI-powered chatbots, generative AI copilots, and agents to build new monetizable business applications.
Amdocs is using Nvidia generative AI for their smart agent, transforming the customer experience and reducing customer service costs by 30 percent.
ServiceNow is using Nvidia for its Now Assist offering, the fastest-growing new product in the company’s history.
SAP is using Nvidia to build dual copilots.
Cohesity is using Nvidia to build their generative AI agent and lower generative AI development costs.
Snowflake, serves over 3 billion queries a day for over 10,000 enterprise customers, is working with Nvidia to build copilots.
Companies across healthcare, energy, financial services, retail, transportation, and telecommunications are adopting NIMs, including Aramco, Lowes, and Uber.
AT&T realized 70 percent cost savings and eight times latency reduction after moving into NIMs for generative AI, call transcription, and classification.
Over 150 partners are embedding NIMs across every layer of the AI ecosystem.
Gaming
Nvidia’s growth in Gaming revenue reflects higher sales of GeForce RTX 40 Series GPUs and game console SOCs. Nvidia achieved strong demand for gaming GPUs as part of the back-to-school season.
RTX PCs can deliver up to 1,300 AI tops and are over 200 RTX AI laptops designed from PC manufacturers. With 600 AI-powered applications and games and an installed base of 100 million devices, RTX is set to revolutionize consumer experiences with generative AI.
Nvidia’s growth in Professional Visualization revenue was driven by the ramp of RTX GPU workstations based on Ada architecture. Demand is being driven by AI and graphic use cases, including model fine-tuning and Omniverse-related workloads.
Several large global enterprises, including Mercedes-Benz, signed multiyear contracts for Nvidia Omniverse Cloud to build industrial digital twins of factories.
Automotive and robotics
Nvidia’s growth in Automotive and robotics revenue was driven by AI Cockpit solutions and self-driving platforms.
Boston Dynamics, BYD Electronics, Figure, Intrinsyc, Siemens, and Teradyne Robotics are using the Nvidia Isaac robotics platform for autonomous robot arms, humanoids, and mobile robots.
Baburajan Kizhakedath
