"NVIDIA emerges as the true winner of OpenAI's crushing defeat"

While the OpenAI drama unfolds, NVIDIA's revenue has surged to $18.1 billion, a growth of 206%, thanks to a significant increase in data center demand.

While the top leadership at OpenAI is busy dealing with boardroom disputes, it's business as usual for the rest of the team. Servers continue to respond to requests from millions of users and developers, and the team has even released a new update for ChatGPT, making the voice feature available to everyone. In other words, more servers and extensive support from NVIDIA.

NVIDIA's CFO, Colette Kress, said during a recent earnings call (FY24 Q3), "ChatGPT, Microsoft 365 Copilot, CoAssist... are all built and run on NVIDIA." He also stated that NVIDIA HGX, along with InfiniBand, essentially serves as the reference architecture for AI supercomputers and data center infrastructure.

The result is another record-breaking performance for NVIDIA. Its revenue has soared to $18.1 billion, a growth of 206%, thanks to a significant increase in data center demand.

NVIDIA's Record-Breaking Earnings

In the third quarter of fiscal year 2024, NVIDIA's data center division achieved significant success, with sales reaching a record $14.51 billion, a year-over-year growth of 279% and a quarter-over-quarter growth of 41%. This leap is driven by the increasing demand for recommendation engines, generative AI applications, and large-scale language model training worldwide.

Half of this revenue comes from cloud infrastructure providers like Amazon, while the rest comes from consumer internet companies and large enterprises.

NVIDIA reported a net income of $9.2 billion, with diluted earnings per share of $3.71, a staggering growth of 1274% compared to the same period last year. Since May, NVIDIA's ambitious forecasts have pushed its market value to over $1 trillion, highlighting its unparalleled revenue growth in the race for AI opportunities.

Despite a decline in data center product sales based on the Ampere GPU architecture, the HGX platform based on the innovative Hopper GPU architecture has gained significant traction among cloud service providers (CSPs), consumer internet companies, and enterprises.

NVIDIA expects sales of approximately $20 billion for this quarter, surpassing the average analyst estimate of $18 billion.

NVIDIA's gaming revenue has also seen significant growth, with a quarter-over-quarter increase of 15% and a year-over-year increase of 81%, thanks to increased demand for the GeForce RTX 40 series GPUs during the holiday and back-to-school sales period. Professional visualization revenue has also surged, with a quarter-over-quarter increase of 10% and a year-over-year increase of 108%.

This growth is attributed to the increased demand for company workstations and the successful launch of laptop workstations utilizing the Ada Lovelace GPU architecture.

NVIDIA CEO Jensen Huang stated, "Our strong growth reflects the industry's shift from general-purpose to accelerated computing and AI generation. The earliest adopters were large language model startups, consumer internet companies, and global cloud service providers. The next wave is just beginning."