Nvidia tells what drove its record $18B revenue
Nvidia tells what drove its record $18B revenue
American technology company Nvidia reported financial results for the third quarter of 2023, which are a record $18.12 billion, with the market capitalization of the company reaching $1.22 trillion.
The company's record profits were the result of Nvidia's successful 12-month run of stock gains. As a result, the company's earnings were up 34% year-over-year and 206% year-over-year for the second quarter of 2023.
The company's record profits were a natural after the stock hit a high of $499.60 per share, Cointelegraph reported.
Nvidia CEO and founder Jensen Huang attributed the revenue growth to the successful development of artificial intelligence technology and increased sales of AI software. Nvidia has been at the forefront of AI developments with its specialized GPUs.
"Our revenue reflects the industry-wide platform shift from generalists to accelerated computing and generative artificial intelligence at NVIDIA," Huang said.
According to the executive, AI startups, Internet companies, and cloud service providers have pioneered the industry, but the next waves of consumer interest are already taking shape.
The record third-quarter results were not just for NVIDIA, but for the chip and processor industry as a whole. Even the difficult situation with the ban on processor exports to China did not have a significant impact on company profits. Last year, about one-fifth of technology companies' revenues came from the Chinese market.
Recall that the U.S. has imposed a partial ban on the supply of chips to a number of countries, including China.
Nvidia reported data center revenues of $14.51 billion, showing nearly $3.6 billion in profits for sales in China.
Shareholders were concerned as Nvidia shares fell nearly 4 percent on Wednesday on concerns that expanding restrictions on U.S. chip manufacturing would undermine business growth in China, the company's third-largest market. That could limit the company's success in the AI sector.
Nvidia CFO Colette Kress told the company's shareholders that the export ban could lead to a significant reduction in shipments to China as early as the fourth quarter. However, for the company, those losses will be "more than offset by strong growth in other regions."
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