You don't need ChatGPT to tell you that AI is big business. Nvidia is making an absolute killing. Yet, for all the buzz and talk about AI, and Nvidia's understandable shift of attention to where the big money is, its gaming business continues to thrive.
Nvidia released its fourth quarter earnings on Wednesday, raking in $22.1 billion in revenue for the quarter, up 265% from a year ago. Its revenue from data centers, where the big AI bucks come from, was up by over 400% from the same period last year, reaching $18.4 billion.
Analyst expectations were for $20.55 billion, so these results were ahead of expectations. Still, Nvidia shares are down by over 7% over the last five days at the time of writing. However, those losses were reversed in after hours trade, surging by up to 10%, largely on the back of guidance for the next quarter. Nvidia is forecasting an even higher revenue of $24 billion for the first quarter of 2024.
The company released its full year results at the same time, reporting revenue of $60.9 billion and net income of $29.76 billion. What caught my eye was the gross margin of 72.7%. That's, uhh, pretty astonishing! And, its forecast for the next quarter is for gross margins to hit 76.3 %. The money printer is going to need an oil change.
Nvidia's founder and CEO, Jensen Huang, explained: «Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations.»
Best CPU for gaming: The top chips from Intel and AMD.
Best gaming motherboard: The right boards.
Best graphics card: Your perfect pixel-pusher awaits.
Best SSD for gaming: Get into the game ahead of the rest.
Nvidia's GTC is scheduled to take place from March 18. Its focus will be—you guessed it—AI. Huang is expected to preview the B100 GPGPU which will no doubt be in high demand from the Googles, Metas and Amazons of the world. But with Huang saying that AI is at a 'tipping point' and other industries including auto, financial
Read more on pcgamer.com