Nvidia’s Quarterly Revenue Exceeded $68 Billion, But Exports from China Still Generated No Income
Chip giant and the world’s most valuable company, Nvidia, released its latest quarterly earnings report on Wednesday, once again setting a profit record and demonstrating the sustained surge in demand for AI computing. The company reported revenue of $68 billion for the quarter, a 73% increase compared to the same period last year, with $62 billion coming from its data center business.
NVIDIA categorized its data center revenue into $51 billion in computing revenue (primarily from GPUs) and $11 billion in networking product revenue (such as NVLink). The company’s total annual revenue reached $215 billion.
Demand is growing exponentially
The global demand for tokens has shown a completely exponential growth, “said Jensen Huang, CEO of Nvidia, during an analyst conference call after the earnings report.” I think everyone has seen this, to the point where the cloud GPU we launched six years ago is now fully utilized and prices are still rising. “
As in the previous quarter, although the US government has recently lifted restrictions on chip exports to China, Nvidia has not reported any revenue from chip exports to China. Colette Kress, the Chief Financial Officer of the company, said, “Although a small portion of H200 products targeting Chinese customers have been approved by the US government, no revenue has been generated yet, and we are not sure if any imported products will be allowed to enter China. “
The rise of Chinese competitors
Our Chinese competitors have recently received funding support through IPOs and are making progress, “Kress continued, apparently referring to Moore Threads’ IPO in December.” They have the potential to change the global landscape of the artificial intelligence industry in the long term
During the investor conference call, Huang Renxun also discussed the company’s pending investment in OpenAI, which reportedly amounts to $30 billion.
We will continue to collaborate with OpenAI and seek to reach a cooperation agreement. We believe we are close to achieving it, “said Huang Renxun. He also mentioned the partnership with Anthropic, Meta, and Elon Musk’s xAI. However, Nvidia emphasized in a document submitted to the US Securities and Exchange Commission on Wednesday that it “cannot guarantee” that this investment will definitely be realized.
Expected investment return
Huang Renxun also responded to market concerns about the sustainability of capital expenditures for technology companies, stating that he believes computing investments will soon bring in revenue.
In this new era of AI, computation is income. Without calculation, tokens cannot be generated. Without tokens, we cannot increase revenue, “said Huang Renxun.” We have reached a turning point and are generating tokens that can create value for customers while bringing profits to cloud service providers. “
Analysts generally believe that Nvidia’s strong performance reflects the thriving development trend of the entire AI industry. As major technology companies increase their investment in the AI field, the demand for computing power continues to rise, and Nvidia, as a core chip supplier, will continue to benefit. However, geopolitical factors and the rise of domestic competitors in China have also added uncertainty to the company’s future development.