Revenues from data centres, which now account for 90% of its revenues, grew 16% over the past quarter to US$35.6 billion, or at a US$140 billion annual run rate. Automotive sector sales — mostly to makers of semi-autonomous vehicles or driverless vehicles — grew 27% over the previous quarter to US$600 million, revenues from chips used in professional visualisation, including augmented and virtual reality applications, grew 5% over the quarter to over US$500 million while sales to other sectors grew 30% in the quarter to US$100 million. The only laggard was its legacy video-gaming chips business, which saw sales decline by 22% over the quarter to US$2.5 billion. Nvidia's business — mainly chips, embedded CUDA software and services — had gross margins of 73% in the last quarter, down from 75% in the previous quarter.
It was the most-watched earnings announcement of the year. In Manhattan, retail investors gathered in bars to cheer the performance of one of the world's largest companies.
On Feb 26, chip giant Nvidia Corp unveiled its earnings for the quarter and the fiscal year ended January. The artificial intelligence (AI) chip pioneer handily beat expectations and raised earnings guidance for its current fiscal year. The chip firm beat its quarterly revenue estimates by over US$1.2 billion ($1.6 billion), up 12% over the previous quarter, or an annualised 78%, to US$39.3 billion, fuelled by insatiable AI demand. Yet, Nvidia has been growing at such a giddying pace — sales have grown fivefold over the past two years to US$130 billion — that investors fretted that the huge beat was its smallest since early 2023. Nvidia's shares fell nearly 16% over the next three trading days before recovering slightly. They are still down 22% from their early January peak.
