Nvidia reports 122% revenue growth on surging demand for data center chips

Nvidia reported earnings after the bell that beat Wall Street expectations, and provided stronger-than-expected guidance for the current quarter.

Nvidia shares fell 8% in extended trading.

Here is how the company did versus LSEG consensus expectations:

Nvidia said it expects about $32.5 billion in current-quarter revenue, versus $31.7 billion expected by analysts, according to StreetAccount. That would be an increase of 80% from a year earlier.

Revenue continues to surge at the chipmaker, rising 122% on an annual basis during the quarter, following three straight periods of year-over-year growth in excess of 200%.

Net income more than doubled to $16.6 billion, or 67 cents per share, in the quarter, from $6.18 billion, or 25 cents per share, in the year-ago period. 

Nvidia has been the primary beneficiary of the ongoing artificial intelligence boom. Nvidia shares are up more than 150% this year after soaring almost 240% in 2023. Its market cap recently eclipsed $3 trillion, and Nvidia was briefly the most valuable public company in the world, though it is now second to Apple.

Revenue in Nvidia's data center business, which includes its AI processors, climbed 154% from a year earlier to $26.3 billion, accounting for 88% of total sales. It also topped StreetAccount expectations of $25.24 billion.

Not all of those sales are AI chips. Nvidia said Wednesday that $3.7 billion in revenue came from the company's networking products.

Much of its business is targeted at a handful of cloud service providers and consumer internet companies including Microsoft, Alphabet, Meta and Tesla. Nvidia's chips, such as the H100 and H200, are used in the vast majority of generative AI applications, such as OpenAI's ChatGPT.

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