NVIDIA Announces Record Quarterly Revenue and Robust Growth in Data Center Sector
NVIDIA (NASDAQ: NVDA) has reported a record-breaking quarterly revenue of $30.0 billion for the second quarter ended July 28, 2024. This marks a 15% increase from the previous quarter and a staggering 122% increase from the same period last year. This financial surge is indicative of NVIDIA’s growing influence and success in the tech industry, particularly in the data center sector.
Key Financial Highlights
- Revenue: The company reported a revenue of $30.0 billion, a 15% increase from Q1 and a 122% jump compared to the previous year.
- Data Center Revenue: The data center segment alone generated $26.3 billion, up 16% from Q1 and 154% from the same period last year.
- GAAP Earnings Per Share (EPS): NVIDIA’s GAAP earnings per diluted share stood at $0.67, up by 12% from the last quarter and 168% year-over-year.
- Non-GAAP EPS: On a non-GAAP basis, earnings per diluted share were $0.68, reflecting an 11% increase from the previous quarter and a 152% increase year-over-year.
CEO Comments
Jensen Huang, the founder and CEO of NVIDIA, highlighted the strong demand for their Hopper products and the anticipation for the upcoming Blackwell technology. He stated, “NVIDIA achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI.”
Huang further noted that Blackwell samples are already being shipped to partners and customers. He emphasized that NVIDIA’s new product categories, such as Spectrum-X Ethernet for AI and NVIDIA AI Enterprise software, are scaling significantly, demonstrating NVIDIA’s full-stack and data center-scale capabilities.
Shareholder Returns and Stock Split
During the first half of fiscal 2025, NVIDIA returned $15.4 billion to shareholders through share repurchases and cash dividends. The company has $7.5 billion remaining under its current share repurchase authorization. Additionally, on August 26, 2024, NVIDIA’s Board of Directors approved an additional $50.0 billion in share repurchase authorization, without expiration.
NVIDIA will pay its next quarterly cash dividend of $0.01 per share on October 3, 2024, to shareholders of record as of September 12, 2024. Furthermore, the company completed a ten-for-one forward stock split on June 7, 2024. All share and per-share amounts have been retroactively adjusted to reflect the stock split.
Q2 Fiscal 2025 Financial Summary
GAAP Financials
- Revenue: $30,040 million
- Gross Margin: 75.1%
- Operating Expenses: $3,932 million
- Operating Income: $18,642 million
- Net Income: $16,599 million
- Diluted EPS: $0.67
Non-GAAP Financials
- Revenue: $30,040 million
- Gross Margin: 75.7%
- Operating Expenses: $2,792 million
- Operating Income: $19,937 million
- Net Income: $16,952 million
- Diluted EPS: $0.68
Outlook for Q3 Fiscal 2025
NVIDIA projects the following for the third quarter of fiscal 2025:
- Revenue: Expected to be around $32.5 billion, plus or minus 2%.
- GAAP and Non-GAAP Gross Margins: Expected to be 74.4% and 75.0%, respectively, with a variance of 50 basis points.
- Operating Expenses: GAAP and non-GAAP operating expenses are projected to be approximately $4.3 billion and $3.0 billion, respectively.
- Other Income/Expense: Expected to be an income of approximately $350 million, excluding gains and losses from non-affiliated investments and publicly-held equity securities.
- Tax Rates: GAAP and non-GAAP tax rates are expected to be 17%, with a variance of 1%, excluding any discrete items.
Recent Achievements and Developments
Data Center
- Revenue: Achieved a record $26.3 billion, up 16% from the previous quarter and 154% year-over-year.
- Technological Advancements: The combination of NVIDIA H200 Tensor Core and NVIDIA Blackwell architecture B200 Tensor Core processors dominated the latest MLPerf benchmark results for inference.
- Product Availability: H200 GPU-powered systems are now available on CoreWeave, the first cloud service provider to offer general availability.
- New Systems: Introduced Blackwell systems featuring NVIDIA Grace CPUs, networking, and infrastructure from top manufacturers like GIGABYTE, QCT, and Wiwynn.
- Adoption: Broad adoption of the NVIDIA Spectrum-X Ethernet networking platform by cloud service providers, GPU cloud providers, and enterprises.
- Developer Tools: Released NVIDIA NIM for broad availability to developers globally, with over 150 companies integrating microservices to accelerate generative AI application development.
- Partnerships: Launched an inference service with Hugging Face powered by NIM microservices on NVIDIA DGX Cloud.
- AI Services: Introduced NVIDIA AI Foundry service and NIM inference microservices to accelerate generative AI for enterprises with the Llama 3.1 collection of models.
- Sovereign AI Capabilities: Japan advanced its sovereign AI capabilities with its ABCI 3.0 supercomputer, integrating H200 GPUs and NVIDIA Quantum-2 InfiniBand networking.
- Quantum Computing: Accelerated quantum computing efforts at national supercomputing centers worldwide with the open-source NVIDIA CUDA-Q platform.
Gaming and AI PC
- Revenue: Gaming revenue reached $2.9 billion, up 9% from the previous quarter and 16% year-over-year.
- Product Announcements: Launched NVIDIA ACE, a suite of generative AI technologies for digital humans, and Project G-Assist, showcasing AI agents assisting gamers and creators in real-time.
- New Titles: Announced new NVIDIA GeForce RTX and DLSS titles, including Indiana Jones and the Great Circle, Dune: Awakening, and Dragon Age: The Veilguard.
- Service Expansion: Surpassed 2,000 games on GeForce NOW, expanded the service into Japan, and announced launches of Black Myth: Wukong and Star Wars Outlaws.
Professional Visualization
- Revenue: Second-quarter revenue was $454 million, up 6% from the previous quarter and 20% year-over-year.
- AI Models: Introduced generative AI models and NIM microservices for OpenUSD to accelerate workflows and the development of industrial digital twins and robotics.
- Industrial Automation: Taiwanese electronics manufacturers are using NVIDIA Metropolis vision AI, NVIDIA Omniverse simulation, and NVIDIA Isaac AI robot development to create more autonomous factories.
Automotive and Robotics
- Revenue: Second-quarter Automotive revenue was $346 million, up 5% from the previous quarter and 37% year-over-year.
- Robot Development: Leading companies like BYD Electronics, Siemens, and Teradyne Robotics are adopting the Isaac robotics platform for R&D and production.
- Sensor Simulation: Announced Omniverse Cloud Sensor RTX microservices to enable physically accurate sensor simulation for autonomous machine development.
- Grand Challenge: Won the Autonomous Grand Challenge at the Computer Vision and Pattern Recognition conference for advances in autonomous vehicle development.
Conclusion
NVIDIA’s financial results for Q2 Fiscal 2025 demonstrate significant growth and a robust market position, particularly in the data center sector. With ongoing innovations and expansions across various segments, including gaming, professional visualization, and automotive robotics, NVIDIA continues to solidify its leadership in the tech industry. The company’s outlook for the next quarter indicates sustained growth and continued focus on advancing technology and meeting market demands.
For more detailed financial information and to listen to the conference call with analysts and investors, visit NVIDIA’s investor relations website at https://investor.nvidia.com.
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