Nvidia Eyes $100 Billion Quarterly Revenue Milestone
AI-generated image · US National Wire
The chipmaker forecasts a revenue surge driven by data center demand, even as consumer PC sales face headwinds.
Nvidia is projecting it will generate $108 billion in revenue within a few months, as The Verge first reported. This forecast follows a record-breaking quarter in which the company reported $96.2 billion in overall revenue, marking an increase of more than $10 billion over the preceding quarter.
The growth is heavily concentrated in the company's data center business, which brought in a record $89 billion last quarter—more than double its year-over-year revenue. During the same period, Nvidia's profits more than doubled to reach $59.7 billion. The Verge notes that while other giants like Alphabet, Apple, and Amazon have previously hit the $100 billion quarterly revenue mark, Nvidia is now positioned to join them.
However, the company's growth is not uniform across all sectors. Nvidia's "edge computing" category, which encompasses its consumer gaming business, generated $7.2 billion last quarter. While this represents a 27 percent year-over-year increase, The Verge reports that Nvidia acknowledged slower sales for consumer PCs, which were impacted by elevated systems and memory prices. Additionally, component shortages continue to push up the cost of Nvidia's consumer GPUs.
As the company looks toward its next earnings report, it has issued warnings regarding price increases for its AI chips. This comes amid a broader competitive landscape where Nvidia is battling for AI chip supremacy against Google, Meta, and Microsoft. Despite the price hikes, demand remains high; The Verge reports that Amazon is adding 2 million of Nvidia's GPUs to its AWS data centers.