Hardware giant NVIDIA has published its financial report for the fourth quarter and therefore the entire fiscal year 2023 and your jaw really drops.
We all know that NVIDIA operates a cloud gaming service with GeForce NOW and diligently supplies us with graphics cards. The company’s main business is now in the AI business and that seems to be turning out to be a money printing machine.
In any case, NVIDIA is recording massive increases in revenue through this line of business. Sales rose 265% year-on-year to a whopping $22.1 billion. Revenue from data centers, where the big AI money comes from, rose by over 400% to $18.4 billion compared to the same period last year.
At the same time, the company released its annual results, reporting sales of $60.9 billion and net profit of $29.76 billion. What is striking is the extremely high gross margin of 72.7%, which according to the forecast is even expected to rise to 76.3% in the next quarter.
Nvidia founder and CEO Jensen Huang explains: “Accelerated computing and generative AI have reached the tipping point. Demand is increasing across companies, industries and nations around the world.”
In gaming, NVIDIA achieved revenue of $2.9 billion in the fourth quarter, on par with the previous quarter but 56% higher than a year ago. The total gaming sales for the financial year are also not bad at $10.4 billion.
There is no end in sight to the AI boom. Things are looking rosy for NVIDIA, especially since the B100 GPGPU, a new AI chip with significantly more power, is scheduled to launch in 2024, which will undoubtedly be in high demand. It is not without reason that NVIDIA is forecasting further sales growth in the first quarter of the new financial year to a whopping $24 billion.
The NVIDIA Kairos demo has evolved to incorporate a number of new features and incorporate the latest NVIDIA ACE microservices: Audio2Face and Riva ASR for AI-powered animation and speech.
