NVIDIA is the world's leading artificial intelligence and graphics processing unit (GPU) company, and its products are widely used in cloud computing, gaming, automotive, medical, and other fields. Recently, the company announced its financial results for the fourth quarter and full year of fiscal 2024 ended January 28, 2024, showing that its revenue and net profit both hit record highs, exceeding market expectations, triggering a 10% jump in the stock price after hours.
According to the financial report data, NVIDIA's revenue in the fourth quarter of fiscal 2024 was $22.1 billion, an increase of 265% year-on-year and 22% quarter-on-quarter; Net profit was 122$8.5 billion, up 769% year-on-year and 33% quarter-on-quarter. Full-year FY2024 revenue was 609US$2.2 billion, a year-on-year increase of 126%; Net profit was 297$6 billion, a year-on-year increase of 581%. These numbers are higher than analysts' figures** and reflect Nvidia's strong performance in various markets.
Among NVIDIA's business segments, data centers and gaming are the two largest revenues** and the two fastest-growing segments. The data center business mainly includes AI and high-performance computing (HPC) solutions for cloud service providers, enterprises and **, as well as virtual GPU (VGPU) services for professional graphics users. The gaming business mainly includes GPUs and related software for PCs and game consoles, as well as game streaming services for cloud gaming platforms.
Nvidia's fourth-quarter data center business revenue was $18.4 billion, up 409% year-over-year and 23% sequentially, accounting for 83% of total revenue. This performance was mainly driven by the launch of a new generation of GPUs based on the Ampere architecture, such as the A100, A40 and A6000, as well as the acquisition of Arm, a British chip design company. These products and transactions have further strengthened NVIDIA's competitive advantage in the AI and HPC fields, attracting many customers including Amazon, Google, Microsoft, Alibaba, Tencent, ByteDance, and others. Nvidia founder and CEO Jensen Huang said accelerated computing and generative AI have reached a tipping point, with surging demand from companies, industries and countries around the world.
Nvidia's fourth-quarter gaming revenue was $2.9 billion, up 67% year-over-year and 10% sequentially, accounting for 13% of total revenue. This performance was driven by the launch of NVIDIA's next-generation gaming GPUs based on Ampere architecture, such as the RTX 30 series, and its expansion on its cloud gaming platform, GeForce Now. These products and services further strengthen NVIDIA's leadership position in the gaming market, meeting the needs of hundreds of millions of gamers and creators around the world. NVIDIA RTX, which was introduced six years ago, is now a massive PC platform for generative AI, Huang said.
In addition to the data center and gaming businesses, Nvidia's other business segments also performed well. Revenue from the automotive business was 2$8.1 billion, up 16% year-on-year and 29% quarter-on-quarter; The revenue of the professional vision business was 1$8.3 billion, up 30% year-on-year and 13% quarter-on-quarter; OEM and other business revenue was 1$5.9 billion, up 41% year-over-year and down 22% sequentially.
Regionally, Nvidia's revenue mainly comes from the United States, Europe, Asia-Pacific and China. Among them, the United States is Nvidia's largest market, with fourth-quarter revenue of 97US$900 million, up 247% year-on-year and 19% quarter-on-quarter; Europe revenue for the fourth quarter was 54US$600 million, up 276% year-on-year and 23% quarter-on-quarter; Asia-Pacific fourth-quarter revenue was 45US$400 million, up 279% year-on-year and 28% quarter-on-quarter; China fourth-quarter revenue was 23$100 million, up 269% year-over-year and 28% sequentially. Notably, the Chinese market has been significantly reduced to a single-digit percentage in Nvidia's data center business, which is related to the tightening of U.S.** export controls on China. Nvidia said that it has not yet obtained a license from the United States** to ship restricted products to China, but it has begun shipping alternative products to China that do not require a license.
Looking ahead, Nvidia expects revenue of $24 billion in the first quarter of fiscal 2025, plus or minus 2%, above analysts' expectations of $21.9 billion. However, due to the continuous growth of market demand and the limitation of advanced packaging capacity, the ** of NVIDIA's AI chips will still be tight this year. Huang said that while everything from wafers, packaging, memory to networking is improving, there are still shortages, and restrictions will remain in place through all of 2024.
NVIDIA also announced that it will host GTC 2024 from March 18 to 21 to unveil the latest breakthroughs in accelerated computing, generative AI, and robotics. More than 300,000 people are expected to register in person or online. Nvidia said the company will bring a significant new product cycle in the coming year, as well as superior innovation to help move the industry forward.
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