Nvidia experienced a remarkable year in 2023, with its profits soaring to nearly $12.3 billion in the three months ending January 28, up from $1.4 billion in the same period the previous year, marking a staggering 769% year-over-year increase.
This growth exceeded even the high expectations of Wall Street analysts.
Moreover, the company’s full-year profits surged by over 580% compared to the previous year.
The robust performance was primarily driven by the burgeoning demand for artificial intelligence (AI) technologies.
Nvidia CEO Jensen Huang emphasized the widespread surge in demand across various companies, industries, and nations, likening it to the onset of a new industrial revolution.
Nvidia’s dominance in the AI semiconductor market is evident, accounting for approximately 70% of AI chip sales.
The company’s core data center business witnessed a remarkable 409% year-over-year growth, reaching a record $18.4 billion in the fourth quarter, thanks to strategic partnerships with tech giants such as Google, Amazon, and Cisco.
Despite concerns about the sustainability of such rapid growth and US restrictions on exporting advanced AI chips to China, Nvidia remains optimistic.
The company has already begun shipping alternative chips to China to navigate the restrictions. While acknowledging the impact of the restrictions on data center sales to China, Nvidia is confident in its ability to sustain growth.
Analysts believe that Nvidia’s positive outlook is supported by its continued dominance in the AI chip market, with competition from other tech giants potentially months away.
Demand for Nvidia chips continues to outpace supply across various industries, indicating a promising future for the company.
Looking ahead, Nvidia anticipates revenue for the current quarter to reach approximately $24 billion, representing a remarkable 233% increase from the same period last year and surpassing Wall Street’s expectations.
Despite potential challenges in ensuring supply meets demand, Nvidia remains optimistic about its growth trajectory.
Source-CNN
