The company’s dominance in the AI chips market continues to pay off, while its CEO says accelerated computing and generative AI have ‘hit the tipping point’.

Nvidia has gained another revenue surge thanks to the global focus on AI technology, ending its fiscal 2024 year on a high note.

The company’s fourth quarter ended 28 January 2024 saw revenue reach $22.1bn, an increase of 22pc compared to the previous quarter and a 265pc increase compared to the same period last year.

Nvidia’s earnings appear incredibly strong across the board, with operating income reaching $13.6bn and net income reaching $12.28bn, a year-on-year increase of 983pc and 769pc respectively.

Nvidia gained a dominant hold in the AI chips market, which saw the company’s earnings soar throughout 2023 thanks to the massive focus companies have on generative AI technology. This dominance contributed to the company becoming the first chipmaker to be valued at $1trn in May 2023.

The company’s total revenue for last year was more than $60.9bn, an increase of 126pc compared to the previous year, while net income grew by 581pc in the same period.

Nvidia’s founder and CEO Jensen Huang said accelerated computing and generative AI have “hit the tipping point”, with demand surging globally across “companies, industries and nations”.

“Our data centre platform is powered by increasingly diverse drivers – demand for data processing, training and inference from large cloud-service providers and GPU-specialised ones, as well as from enterprise software and consumer internet companies,” Huang said.

“Vertical industries – led by auto, financial services and healthcare – are now at a multibillion-dollar level.”

Philip Kaye, the co-founder and director at Vesper Technologies – a Nvidia elite networking partner – said the earnings results come as “no surprise” as the demand for AI computing power across industries is “surging exponentially”.

“As AI models become more complex and more widely adopted and companies collect and analyse more data, the computing hardware requirements will only increase,” Kaye said. “Looking ahead, Nvidia’s earnings growth trajectory shows no signs of slowing down.

“Competitors may nibble at its heels in certain segments, but Nvidia has both the tech and the ecosystem momentum on its side right now.”

Nvidia’s dominance may not last forever however, as other companies have their eyes on the growing AI chips market. Microsoft unveiled its own custom silicon chips last year that are designed for AI tasks. The tech giant also contributed to the $110m funding round of AI chip start-up d-Matrix, which aims to launch its own AI chip this year.

Microsoft is another company that has benefitted significantly from its focus on AI, challenging Apple for the title of the world’s most valuable company.

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