Tuesday, 02 January 2024 12:17 GMT

Nvidia Reports Record Q1 Revenue on Strong AI Infrastructure Demand


(MENAFN) The US-based chip giant has posted a record-breaking fiscal first-quarter performance, with revenue surging sharply and forward guidance coming in stronger than analysts had expected, as demand for artificial intelligence infrastructure continues to fuel rapid expansion in its data center operations, according to reports.

For the quarter ending April 26, revenue climbed 85% compared with the same period a year earlier and rose 20% from the previous quarter, reaching $81.6 billion.

The company’s Data Center segment delivered particularly strong results, setting a new record at $75.2 billion. This represented a 92% increase year-on-year and a 21% rise quarter-on-quarter, as stated by reports. Within the earlier breakdown of reporting categories, Data Center compute revenue reached $60.4 billion, while networking revenue advanced to $14.8 billion.

“The buildout of AI factories — the largest infrastructure expansion in human history — is accelerating at extraordinary speed,” Jensen Huang, founder and CEO of Nvidia, said in the company’s earnings statement.

Huang said, “Agentic AI has arrived,” adding that Nvidia is positioned at the center of the transformation as its platform runs “in every cloud” and scales from hyperscale data centers to the edge.

Financial margins also remained strong over the period. GAAP gross margin came in at 74.9%, while the non-GAAP gross margin stood slightly higher at 75%. Earnings per share showed solid performance as well, with GAAP diluted EPS recorded at $2.39 and non-GAAP diluted EPS at $1.87.

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