Nvidia rides the AI wave to record revenue growth

23 May 2024

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The chipmaker continues to focus on the growing AI sector and its CEO claims the ‘next industrial revolution has begun’.

Nvidia continues to benefit from the global focus on AI, as its quarterly earnings continue to beat expectations.

The company reported record quarterly revenue of $26bn for its first 2025 fiscal quarter. This is up 18pc from the previous quarter and marks a 262pc increase from the same period last year. Meanwhile, Nvidia’s net income was $14.88bn, up from $2bn a year ago.

The results follow a very successful year for Nvidia, which soared to become the most dominant chipmaker for the rapidly growing AI sector. The company reached a valuation of $1trn last year thanks to its focus on AI chips and briefly hit the $2trn valuation earlier this year, a feat it achieved again in March.

“The next industrial revolution has begun – companies and countries are partnering with Nvidia to shift the trillion-dollar traditional data centres to accelerated computing and build a new type of data centre – AI factories – to produce a new commodity: artificial intelligence,” said Nvidia founder and CEO Jensen Huang.

“AI will bring significant productivity gains to nearly every industry and help companies be more cost- and energy-efficient, while expanding revenue opportunities.”

Allan Kaye, the CEO of Vespertec, said Nvidia’s earnings validate the “massive demand for AI computing capabilities” and shows its position as “the pre-eminent player in the AI-hardware field”.

“While competitors are attempting to challenge Nvidia, the company’s technological prowess and robust partner ecosystem provide a significant competitive advantage, which is reflected by these latest earnings,” Kaye said.

“As businesses continue to prioritise AI adoption, the need for powerful hardware like Nvidia’s cutting-edge GPUs and AI-optimised chips will only intensify.”

In March, Nvidia unveiled its Blackwell products as the successors to its powerful AI chips, which many AI companies have used to support the development of their models.

But the company is also facing its own share of legal troubles. Earlier this year, a trio of authors sued Nvidia, claiming the company used copyrighted books to train one of its AI models.

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Leigh Mc Gowran is a journalist with Silicon Republic