NVIDIA reveals Q3 fiscal 2024 financial results, showcasing strong performance

nVidia, the leading technology company known for its advanced graphics processing units (GPUs), has reported impressive financial results for the third quarter of 2023. The company’s revenue reached a staggering $18.12 billion, marking a remarkable 206% increase compared to the same period last year and a 34% increase from the previous quarter. The earnings per diluted share also saw significant growth, with a year-over-year increase of over 12x and a quarter-over-quarter increase of 50%. Non-GAAP earnings per diluted share were equally impressive, rising nearly 6x from a year ago and 49% from the previous quarter.

Jensen Huang, the founder and CEO of NVIDIA, attributed this strong growth to the industry-wide transition towards accelerated computing and generative artificial intelligence (AI). He highlighted that large language model startups, consumer internet companies, and global cloud service providers were the early adopters of this transformative technology. However, he also emphasized that the next waves of adoption are already underway. Nations, regional cloud service providers, enterprise software companies, and various industries are investing in AI to meet the growing demand for customized AI solutions.

NVIDIA’s success can be attributed to its diverse portfolio of products and services. Its GPUs, CPUs, networking solutions, AI Foundry services, and NVIDIA AI Enterprise software have all contributed to the company’s rapid growth. According to Huang, the era of generative AI is now in full swing.

Looking ahead, NVIDIA has provided an optimistic outlook for the fourth quarter of fiscal 2024. The company expects revenue to reach approximately $20.00 billion, with a margin of error of plus or minus 2%. Gross margins are projected to be around 74.5% for GAAP and 75.5% for non-GAAP. Operating expenses are estimated to be approximately $3.17 billion for GAAP and $2.20 billion for non-GAAP. Other income and expense are expected to be an income of around $200 million, excluding gains and losses from non-affiliated investments. The projected tax rate is 15.0%, plus or minus 1%, excluding any discrete items.

NVIDIA’s achievements in various sectors have been noteworthy. In the data center domain, the company achieved record-breaking revenue of $14.51 billion for the third quarter. It introduced products such as the NVIDIA HGX H200 with the new NVIDIA H200 Tensor Core GPU and an AI foundry service to accelerate the development of custom generative AI applications. NVIDIA also made significant advancements in its partnerships with global cloud service providers, including Google Cloud Platform, Microsoft Azure, and Oracle Cloud Infrastructure.

In the gaming sector, NVIDIA reported revenue of $2.86 billion for the third quarter. The company launched DLSS 3.5 Ray Reconstruction, a technology that enhances ray-traced images for intensive ray-traced games and applications. It also expanded its library of games supporting DLSS and Reflex technologies, reaching a total of over 475 RTX games and applications. Additionally, Geforce NOW, NVIDIA’s cloud gaming service, surpassed 1,700 games, including highly anticipated titles like Alan Wake 2, Baldur’s Gate 3, and Cyberpunk 2077: Phantom Liberty.

NVIDIA’s professional visualization sector saw impressive growth as well, with revenue reaching $416 million for the third quarter. The company announced its partnership with Mercedes-Benz, which utilizes NVIDIA Omniverse to create digital twins for planning and operating manufacturing and assembly facilities worldwide. Moreover, NVIDIA introduced a new line of desktop workstations equipped with powerful GPUs and smart interface cards for AI model training and inference.

In the automotive sector, NVIDIA reported revenue of $261 million for the third quarter. The company continued its collaboration with Foxconn to develop next-generation electric vehicles using the advanced NVIDIA DRIVE Hyperion platform and NVIDIA DRIVE Thor system-on-a-chip.

Colette Kress, NVIDIA’s executive vice president and chief financial officer, provided further insights into the company’s financial performance during the quarter. Her detailed commentary can be found on NVIDIA’s investor relations website.

Overall, NVIDIA’s third-quarter results showcase the company’s exceptional growth and success in various sectors. With its innovative products and services, NVIDIA is well-positioned to capitalize on the increasing demand for accelerated computing and generative AI.

Background Information

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About Foxconn:

Foxconn, officially known as Hon Hai Precision Industry Co., Ltd., is a global technology manufacturing company. With a rich history dating back to 1974, Foxconn has played a pivotal role in revolutionizing the electronics industry. Foxconn is mainly known for its role as a important contract electronics manufacturer. The company specializes in assembling a wide variety of electronic products, including smartphones, tablets, computers, televisions, gaming consoles, and other consumer electronics on behalf of some of the world's leading technology brands

  

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About Google:

Google, founded by Larry Page and Sergey Brin in 1998, is a multinational technology company known for its internet-related services and products. Initially for its search engine, Google has since expanded into various domains including online advertising, cloud computing, software development, and hardware devices. With its innovative approach, Google has introduced influential products such as Google Search, Android OS, Google Maps, and Google Drive. The company's commitment to research and development has led to advancements in artificial intelligence and machine learning.

  

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About Microsoft:

Microsoft, founded by Bill Gates and Paul Allen in 1975 in Redmond, Washington, USA, is a technology giant known for its wide range of software products, including the Windows operating system, Office productivity suite, and cloud services like Azure. Microsoft also manufactures hardware, such as the Surface line of laptops and tablets, Xbox gaming consoles, and accessories.

  

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About nVidia:

NVIDIA has firmly established itself as a leader in the realm of client computing, continuously pushing the boundaries of innovation in graphics and AI technologies. With a deep commitment to enhancing user experiences, NVIDIA's client computing business focuses on delivering solutions that power everything from gaming and creative workloads to enterprise applications. for its GeForce graphics cards, the company has redefined high-performance gaming, setting industry standards for realistic visuals, fluid frame rates, and immersive experiences. Complementing its gaming expertise, NVIDIA's Quadro and NVIDIA RTX graphics cards cater to professionals in design, content creation, and scientific fields, enabling real-time ray tracing and AI-driven workflows that elevate productivity and creativity to unprecedented heights. By seamlessly integrating graphics, AI, and software, NVIDIA continues to shape the landscape of client computing, fostering innovation and immersive interactions in a rapidly evolving digital world.

  

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About Oracle:

Oracle Corporation is a important American multinational technology company founded in 1977 and headquartered in Redwood City, California. It's one of the world's largest software and cloud computing companies, known for its enterprise software products and services. Oracle specializes in developing and providing database management systems, cloud solutions, software applications, and hardware infrastructure. Their flagship product, the Oracle Database, is widely used in businesses and organizations worldwide. Oracle also offers a range of cloud services, including Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS).

  

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Technology Explained

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DLSS: DLSS (Deep Learning Super Sampling) is an advanced AI-powered technology developed by NVIDIA that enhances real-time graphics rendering in video games and applications. DLSS utilizes deep learning algorithms to upscale lower-resolution images in real-time, resulting in higher-quality visuals while maintaining optimal performance. By harnessing the power of AI and deep neural networks, DLSS effectively boosts frame rates and image quality, enabling gamers to experience smoother gameplay and more immersive graphics without sacrificing computational efficiency. This technology has gained widespread recognition for its ability to deliver impressive visual fidelity and improved performance simultaneously, revolutionizing the way modern computer graphics are processed and displayed.

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Foundry: A foundry is a dedicated manufacturing facility focused on producing semiconductor components like integrated circuits (ICs) for external clients. These foundries are pivotal in the semiconductor industry, providing diverse manufacturing processes and technologies to create chips based on designs from fabless semiconductor firms or other customers. This setup empowers companies to concentrate on innovative design without needing substantial investments in manufacturing infrastructure. Some well-known foundries include TSMC (Taiwan Semiconductor Manufacturing Company), Samsung Foundry, GlobalFoundries, and UMC (United Microelectronics Corporation).

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Geforce: Geforce is a line of graphics processing units (GPUs) developed by Nvidia. It is the most popular GPU used in the computer industry today. Geforce GPUs are used in gaming PCs, workstations, and high-end laptops. They are also used in virtual reality systems, artificial intelligence, and deep learning applications. Geforce GPUs are designed to deliver high performance and power efficiency, making them ideal for gaming and other demanding applications. They are also capable of rendering high-resolution graphics and providing smooth, realistic visuals. Geforce GPUs are used in a variety of applications, from gaming to professional workstations, and are the preferred choice for many computer users.

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GPU: GPU stands for Graphics Processing Unit and is a specialized type of processor designed to handle graphics-intensive tasks. It is used in the computer industry to render images, videos, and 3D graphics. GPUs are used in gaming consoles, PCs, and mobile devices to provide a smooth and immersive gaming experience. They are also used in the medical field to create 3D models of organs and tissues, and in the automotive industry to create virtual prototypes of cars. GPUs are also used in the field of artificial intelligence to process large amounts of data and create complex models. GPUs are becoming increasingly important in the computer industry as they are able to process large amounts of data quickly and efficiently.

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