Nvidia’s Data Center business has soared to new heights, reporting a staggering $18.4 billion in fourth-quarter sales, marking a remarkable 409% increase from the same period last year. This substantial growth underscores the company’s significant gains in the artificial intelligence (AI) sector.
The robust performance of Nvidia’s Data Center unit was revealed as part of the company’s fourth-quarter earnings release on Wednesday. Analysts had anticipated sales of $17.06 billion for the fiscal fourth quarter, but Nvidia surpassed expectations with its impressive results.
Investors have been closely monitoring Nvidia’s Data Center business, which includes the highly sought-after H100 graphics cards. These graphics cards are extensively utilized to power AI applications like OpenAI’s ChatGPT, which gained widespread attention since its launch in November 2022.
The demand for computing power has surged as tech giants such as Alphabet and Meta, alongside notable startups like Anthropic and Cohere, have introduced increasingly advanced versions of large language models. These models require substantial computational resources, driving the need for Nvidia’s powerful chips.
Meta’s CEO, Mark Zuckerberg, revealed in January that the company plans to integrate 350,000 H100 graphics cards into its computing infrastructure by the end of 2024, signaling a significant investment in Nvidia’s chips to bolster its AI initiatives.
Nvidia’s Data Center unit has experienced exponential growth over the past three quarters, solidifying its position as the market leader in supplying computer chips for AI research and products. Here’s a breakdown of Nvidia’s Data Center unit sales in recent quarters:
- Fiscal Q3 2024: Data center revenue reached $14.51 billion, marking a remarkable 279% increase from the previous year.
- Fiscal Q2 2024: Data center revenue amounted to $10.32 billion, reflecting a substantial 171% year-on-year growth.
- Fiscal Q1 2024: Data center revenue stood at $4.28 billion, showing a notable 14% increase from the previous year.
- Fiscal Q4 2023: Data center revenue reported as $3.62 billion, representing an 11% increase from the previous year.
- Fiscal Q3 2023: Data center revenue amounted to $3.83 billion, marking a solid 31% increase from the previous year.
Nvidia’s stellar performance in the Data Center segment highlights the company’s pivotal role in driving advancements in AI technology and its significant contributions to the computing landscape.