Nvidia’s AI-Driven Surge

Nvidia has once again demonstrated the transformative power of AI. The company’s Q2 2024 earnings report revealed a staggering $13.5 billion in revenue, largely attributed to the surging demand for its generative AI chips – record-setting demand that overshadowed the challenges posed by a dwindling PC industry.

Nvidia’s data center revenue alone stood at a whopping $10.32 billion, marking a more than two-fold increase in just a quarter. The resultant profit: $6.188 billion, up 843% year over year.

While the gaming sector dipped from its pandemic highs, it still managed to register a 22% year-over-year growth, amounting to $2.48 billion in revenue. Nvidia remains optimistic about the gaming sector, hinting at potential upgrades for gamers in the near future.

Looking ahead, Nvidia projects a revenue of $16 billion for the next quarter, with AI continuing to be the primary driver. The company’s next AI chip, the GH200, is slated for a mid-2024 release. As Nvidia gears up to meet the escalating demand, its competitors (Intel and AMD) have yet to present a formidable challenge in the realm of generative AI silicon.

This AI-centric growth trajectory underscores an obvious trend in the tech landscape. Is there an investable thesis here? That’s a question for your financial advisor.

Author’s note: This is not a sponsored post. I am the author of this article and it expresses my own opinions. I am not, nor is my company, receiving compensation for it.

About Shelly Palmer

Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, is a regular commentator on CNN and writes a popular daily business blog. He's a bestselling author, and the creator of the popular, free online course, Generative AI for Execs. Follow @shellypalmer or visit shellypalmer.com.



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