NVIDIA Predicts 170% Revenue Growth In Current Quarter After Massive Earnings Smash

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Chip designer NVIDIA Corporation released its highly anticipated second quarter of fiscal year 2024 earnings earlier today. The results saw NVIDIA's data center segment fire on full cylinders and more than double the sales over the year-ago quarter, cementing its new role as the company's bread and butter division. NVIDIA's former high earner, its gaming division, has been on the backfoot lately as a slowdown in the personal computing market has hit consumer budgets. In the second quarter, the segment posted a modest 21.7% annual growth indicating that perhaps the downturn in the industry that has plagued firms for more than a year now might be nearing its end.

Before today's earnings release, NVIDIA's shares had started to soar as numerous Wall Street analysts came forward with their projects for the firm's future. However, the stock pared back some of these gains a day before, as a few potential investors booked in profits and became wary of the costly impact of an earnings miss.

NVIDIA did not miss estimates; in fact, it blew its own guidance out of the part by reporting a whopping $13.5 billion in revenue to mark an 88% sequential and 101% annual growth. Effectively, the firm doubled its revenue over the year-ago quarter, and this strong performance comes purely from the data center division.

Out of the $13.5 billion in revenue for the quarter, data centers accounted for $10.3 billion in sales, making the company more of an enterprise products provider than a GPU provider. Naturally, growth in the data center division outpaced broader annual and sequential revenue growth, as the