NVIDIA revealed on Wednesday it had earned $30bn USD for the second quarter (Q2), smashing its earnings from the same time last year.

Its data centre technologies contributed mostly to the gains at $26.3bn, or a 16 percent increase from the first quarter this year (Q1 2024)

Reports also show that its net income spiked to 16.5bn , or 168 percent higher than the previous period last year, with shareholders receiving cuts of $15.4bn. The company has also received authorisation for $50bn to repurchase shares.

Jensen Huang, Founder and Chief Executive, NVIDIA, said in a statement that demand for its Hopper solution “remains strong” and that “the anticipation for Blackwell is incredible.”

The CEO added: “NVIDIA achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI.”

He continued,

“Blackwell samples are shipping to our partners and customers. Spectrum-X Ethernet for AI and NVIDIA AI ENterprise software are two new product categories achieving significant scale, demonstrating that NVIDIA is a full-stack and data center-scale platform.”

Despite the comments, the company’s shares dropped 6 percent.

MarketWatch reports that it is likely due to its latest earnings reaching marginally lower growth year-over-year.

Its current growth rate of 122 percent was 15.23 percent higher than $26.044bn in Q1. Additionally, its profits had slowed over four consecutive quarters, MarketWatch added.

NVIDIA’s GAAP operating margin in Q2 stood at 62.06 percent, down from 64.92 percent in Q1, but up from 50.34 percent year-over-year, it added.

All’s Well that Blackwells

According to NVIDIA, its Blackwell AI solution aims to solve issues with data centre infrastructure demand, including large language modelling (LLM) real-time services.

In initial MLPerf benchmarks tests, the NVIDIA Blackwell platform saw a four-fold increase over its H100 Tensor Core graphics processing units (GPUs) whilst running its largest workload, Meta’s Llama 2 70B.

The blog post also notes that cloud service provider CoreWeave will become the first to supply its H200 GPU-powered systems.

Updates on NVIDIA’s AI Compute Dominance

The news comes after tech stocks in the United States dipped amid anticipation of NVIDIA’s quarterly earnings report.

As the tech industry competes for the top spot in artificial intelligence (AI) semiconductors and solutions, Reuters reported that the rise in costs to produce AI solutions and products has hit companies like Microsoft, Alphabet, Broadcom, Advanced Micro Devices, and others.

Furthermore, the Santa Clara-based tech giant may soon contend with Shenzhen’s Huawei Technologies, after the latter announced it would launch an AI processor to rival the H100, challenging NVIDIA’s market share in mainland China.

The move follows massive unilateral trade restrictions on Huawei’s access to markets in the West and Middle East in the wake of the ongoing US-China trade war across the Trump and Biden administrations.

Recent figures show that NVIDIA reached a market capitalisation of $3.089tn and is the second-largest company in the world after Apple.

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