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Nvidia announces record sales as AI at “tipping point”

Nvidia is now the fourth most valuable company in the world
Last Updated on February 22, 2024
Nvidia breakthroughs in AI (Image Credit: Nvidia)
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Nvidia’s Q4 FY24 earnings call has revealed that the company’s revenues have surged by $22bn in the three month span, amassing a total of $60.9bn for the financial year with AI playing a massive part its success.

In the earnings call, Nvidia president and CEO Jensen Huang explained that: “accelerated computing and generative AI have hit the tipping point” with a forecast jump of 233% in quarterly revenue which has far exceeded analysists estimates, coming far ahead of AMD and Intel respectively. Huang explains: “Demand is surging worldwide across companies, industries, and nations”.

The company’s data center advancements have made up the bulk of its leading financial success, according to a statement issued shortly after the call concluded. In total, the fourth-quarter revenue was a record $18.4bn up from the previous quarter by 27% and a staggering 409$ when compared year-on-year. Full year revenue has risen by 217% to achieve $47.5bn across this sector.

Nvidia’s future is all-in on AI

AI has played a massive factor in the company’s staggering recent successes as the company partnered with Google with new open language models which are accelerated by TensorRT-LLM with Gemma. Nvidia has also expanded its reach with Amazon Web Services hosting DGX Cloud and broadened out into biotechnology with Amgen to build new generation AI models to aid drug discovery.

Speaking to the gaming side, the fourth-quarter revenue accounts for $2.9bn which is up 56% from the previous year. The full-year revenue grew 15% to a total of $10.4bn. That means that the gaming hardware accounts for just 17% of the company’s earnings. Included in the quarter was the launches of the RTX 40 Super series which included the RTX 4070 Super, RTX 4070 Ti Super, and RTX 4080 Super, but AI still plays a factor with the recently launched Chat with RTX LLM and DLSS-powered games.

What’s more, it appears to be just the start for Nvidia as it looks to continue the momentum according to Huang: “We are one year into generative AI” he explained, “My guess is we are literally into the first year of a 10 year cycle of spreading this technology into every single industry”. Digital intelligence appears to be the way forward for the company, and Team Green seeks to be leading the Generative AI digital revolution for “trillions of dollars of infrastructure of AI generation factories” Huang said at the end of the earnings call (via Yahoo Finance).

Image Credit: Nvidia

Aleksha McLoughlin is Hardware and News Editor for PC Guide and she oversees buying guides, reviews, news, and features on site. She was previously Hardware and Affiliates Editor at VideoGamer.