Nvidia reported a 112% revenue increase to $30.8 billion in the quarter, with analysts expecting continued investment in AI cloud services driving demand for Nvidia’s chips. The company has also clarified that Blackwell production is now in full steam, addressing previous overheating issues.
Revenue Breakdown
Nvidia’s data center revenue totaled $30.8 billion for the quarter, which was up 112 percent from last year. The company’s gross profit margin was 74.5 percent, essentially flat from a year ago.
Market Outlook
Industry analysts reported that big tech companies like Amazon, Google, Microsoft, and Meta will continue to invest in AI cloud services, driving demand for Nvidia’s chips. Patrick Moorhead, founder and chief analyst of Moor Insights & Strategy, expressed confidence in Nvidia’s growth prospects, stating that the generative AI market will continue to grow for at least 12-18 months.
Production Status
Jensen Huang, co-founder and CEO of Nvidia, stated that Blackwell production is now “in full steam.” The company will deliver more Blackwells than previously estimated this quarter. Some of Nvidia’s most important customers, like Microsoft and OpenAI, have already received the new chips.
Overheating Issues Addressed
Industry analysts reported that the overheating issues with Blackwell chips when connected together in Nvidia’s customized server racks have been largely addressed. Dylan Patel, chief analyst at SemiAnalysis, stated that the Blackwell overheating issues “have been present for months and have largely been addressed.”
