Anyone who still thinks NVIDIA’s main business these days is gaming must be crazy.
NVIDIA has posted its financial results for third quarter fiscal 2024, revealing revenues of $18.12 billion for the period—an amount that would represent a 206% increase over what the company saw a year ago, and 34% higher than the previous quarter.
These numbers are owed in massive part to NVIDIA’s data center segment, which pulled in a record $14.51 billion, up 41% from the previous quarter and up 279% from a year ago, as the company noted.
Gaming, on the other hand, saw revenues of $2.86 billion, and while that number pales in comparison to what NVIDIA made with its data center products, it’s still a win for the company, up 15% from the previous quarter and up 81% from a year ago.
People have complained that the GeForce RTX 40 Series is too expensive, but apparently not, as NVIDIA seems to be selling them just fine.
Here’s a breakdown of how each segment fared for NVIDIA:
Data Center
- Third-quarter revenue was a record $14.51 billion, up 41% from the previous quarter and up 279% from a year ago.
- Announced NVIDIA HGX H200 with the new NVIDIA H200 Tensor Core GPU, the first GPU with HBM3e memory, with systems expected to be available in the second quarter of next year.
- Introduced an AI foundry service — with NVIDIA AI Foundation Models, NVIDIA NeMo framework and NVIDIA DGX Cloud AI supercomputing — to accelerate the development and tuning of custom generative AI applications, first available on Microsoft Azure, with SAP and Amdocs among the first customers.
- Announced that the NVIDIA Spectrum-X Ethernet networking platform for AI will be integrated into servers from Dell Technologies, Hewlett Packard Enterprise and Lenovo in the first quarter of next year.
- Announced that NVIDIA GH200 Grace Hopper Superchips, including a new quad configuration, will power more than 40 new supercomputers, including the JUPITER system at Jülich Supercomputing Centre and Isambard-AI at the University of Bristol.
- Made advances with global cloud service providers:
- Google Cloud Platform made generally available new A3 instances powered by NVIDIA H100 Tensor Core GPUs and NVIDIA AI Enterprise software in Google Cloud Marketplace.
- Microsoft Azure will be offering customers access to NVIDIA Omniverse Cloud Services for accelerating automotive digitalization, as well as new instances featuring NVL H100 Tensor Core GPUs and H100 with confidential computing, with H200 GPUs coming next year.
- Oracle Cloud Infrastructure made NVIDIA DGX Cloud and NVIDIA AI Enterprise software available in Oracle Cloud Marketplace.
- Partnered with a range of leading companies on AI initiatives, including Amdocs, Dropbox, Foxconn, Genentech (member of Roche Group), Infosys, Lenovo, Reliance Industries, Scaleway and Tata Group.
- Announced record-setting performance in the latest two sets of MLPerf benchmarks for inference and training, with the NVIDIA Eos AI supercomputer training a GPT-3 model 3x faster than the previous record.
- Announced growing worldwide support for the NVIDIA CUDA Quantum platform, including new efforts in Israel, the Netherlands, the U.K. and the U.S.
Gaming
- Third-quarter revenue was $2.86 billion, up 15% from the previous quarter and up 81% from a year ago.
- Launched DLSS 3.5 Ray Reconstruction, which creates high-quality ray-traced images for intensive ray-traced games and apps, including Alan Wake 2 and Cyberpunk 2077.
- Released TensorRT-LLM for Windows, speeding on-device LLM inference by up to 4x.
- Added 56 DLSS games and over 15 Reflex games, bringing the total number of RTX games and applications to over 475.
- Surpassed 1,700 games on GeForce NOW, including launches of Alan Wake 2, Baldur’s Gate 3, Cyberpunk 2077: Phantom Liberty, Forza Motorsport and Starfield.
Professional Visualization
- Third-quarter revenue was $416 million, up 10% from the previous quarter and up 108% from a year ago.
- Announced that Mercedes-Benz is using NVIDIA Omniverse to create digital twins to help plan, design, build and operate its manufacturing and assembly facilities around the world.
- Announced a new line of desktop workstations with NVIDIA RTX 6000 Ada Generation GPUs and NVIDIA ConnectX® smart interface cards for training smaller AI models, fine-tuning models and running inference locally.
Automotive
- Third-quarter revenue was $261 million, up 3% from the previous quarter and up 4% from a year ago.
- Furthered its collaboration with Foxconn to develop next-generation electric vehicles for the global market, using the next-generation NVIDIA DRIVE Hyperionplatform and NVIDIA DRIVE Thor system-on-a-chip.
NVIDIA CEO Jensen Huang, who answered questions during an earnings call, has suggested that NVIDIA is not only expecting to make even more money in the years ahead, but that it’s fully prepared to do so:
Absolutely believe the Data Center can grow through 2025. And there are, of course, several reasons for that. We are expanding our supply quite significantly. We have already one of the broadest and largest and most capable supply chain in the world. Now, remember, people think that the GPU is a chip. But the HGX H100, the Hopper HGX has 35,000 parts, it weighs 70 pounds. Eight of the chips are Hopper. The other 35,000 are not. It is — even its passive components are incredible.
And as for gaming, Colette Kress (NVIDIA EVP & CFO) talked up DLSS and RTX’s growing adoption, as well as GeForce NOW:
Gaming has doubled relative to pre-COVID levels even against the backdrop of lackluster PC market performance. This reflects the significant value we’ve brought to the gaming ecosystem with innovations like RTX and DLSS. The number of games and applications supporting these technologies has exploded in that period, driving upgrades and attracting new buyers. The RTX ecosystem continues to grow. There are now over 475 RTX-enabled games and applications.
Generative AI is quickly emerging as the new pillar app for high performance PCs. NVIDIA RTX GPUs to find the most performance AI PCs and workstations. We just released TensorRT-LLM for Windows, which speeds on-device LLM inference up by 4x. With an installed base of over 100 million, NVIDIA RTX is the natural platform for AI application developers.
Finally, our GeForce NOW cloud gaming service continues to build momentum. Its library of PC games surpassed 1,700 titles, including the launches of Alan Wake 2, Baldur’s Gate 3, Cyberpunk 2077: Phantom Liberty and Starfield.
Kress went on to predict that “gaming will likely decline sequentially as it is now more aligned with notebook seasonality.”