Generative AI has fuelled the imagination of companies worldwide, along with other forms of AI. Everywhere you look companies are infusing their products with AI to make our lives smarter and easier. Behind AI is hardware - pure grunty, beefy hardware, and Nvidia is riding the wave. Nvidia released its Q4 earnings this week and Australian business consulting advisory Digital Smoothie has helped decipher what it all means.
"Every NVIDIA chip sold is fueling an AI dream and opening possibilities and challenges beyond imagination," said Digital Smoothie CEO Rania Awad.
The Nvidia Q4 results showcase unprecedented growth and solidify its position at the forefront of the AI boom, Awad said.
Key statistics from the Q4 results are:
- revenue of $US 22.1B, exceeding forecasts of $US 20.4B
- $US 12.29B net profit, up from $US 1.41B a year prior
- 3X sales growth, tripling from $US 7.19B in January 2023 to today's massive numbers
{loadposition david08}
Digital Smoothie's analysis of the Nvidia results also brings out the interesting nugget that Nvidia's gaming revenue - while still up 56% - is no longer Nvidia's primary revenue source. Instead, that title now goes to data centre revenue, with Nvidia seeing a whopping 5x increase in this area alone. This is undoubtedly due to the unprecedented rise of generative AI interest and applications, with everything from ChatGPT to GitHub Copilot, to Google Gemini, Google Vertex, Adobe FireFly, and so many more.
Check out the rest of the Digital Smoothie analysis on LinkedIn, and follow Rania Awad and Digital Smoothie for more insights and analysis.