NVIDIA has defied expectations with staggering growth across the board, riding the wave of the artificial intelligence boom. The tech giant’s profits soared by an astonishing 265%, while net income experienced an astronomical surge of 769%. As a result, NVIDIA’s shares witnessed an impressive 10% surge in the aftermath of the report.

NVIDIA, a prominent player in the tech industry, has been reaping the rewards of the sector’s infatuation with large-scale artificial intelligence models. These models, reliant on NVIDIA’s high-performance graphics processors for servers, have fueled the company’s financial ascent to new heights.

In a conference call with analysts, NVIDIA’s CEO, Jensen Huang, addressed concerns among investors regarding the sustainability of such unprecedented growth. Despite these apprehensions, Huang remains optimistic about the company’s ability to maintain robust sales figures throughout the upcoming year.

The fourth-quarter net income for NVIDIA reached a staggering $12.29 billion, translating to $4.93 per share—a jaw-dropping surge of 769% from the previous year’s figures. The total revenue, a testament to NVIDIA’s dominance, witnessed an extraordinary 265% increase, predominantly fueled by the robust sales of artificial intelligence chips for servers. Notably, the Hopper and H100 lines played a pivotal role in driving this phenomenal growth.

The data center business, now the linchpin of NVIDIA’s revenue, exhibited a remarkable ascent of 409%, reaching a colossal $18.40 billion. The majority of these sales originated from major cloud providers, underscoring the pivotal role NVIDIA plays in the infrastructure of cloud computing. However, the company acknowledged the impact of recent U.S. restrictions on semiconductor exports to China, which have affected data center revenues.

Contrastingly, NVIDIA’s gaming business, once the bedrock of its operations, experienced a more modest growth of 56% year-on-year, reaching $2.87 billion. The gaming graphics cards, which were the company’s primary focus before the AI boom, still contribute significantly, with some models finding utility in the realm of artificial intelligence.

While the juggernaut that is NVIDIA continues to surge, not all aspects of its business mirror this exponential growth. The automotive-related business witnessed a 4% decline, totaling $281 million, hinting at challenges in that particular sector. Conversely, the OEM and other business segments, which include crypto chips, witnessed a 7% increase, reaching $90 million. The business catering to professional applications, a smaller yet formidable arm of NVIDIA, experienced an impressive growth of 105%, culminating in $463 million in revenue.

As NVIDIA propels itself into the future, the financial report serves as a testament to the company’s resilience, adaptability, and continued innovation. For now, Wall Street watches with bated breath, eager to witness the next chapter in NVIDIA’s unrelenting success story.

Source: CNBC