Nvidia has reported a record quarterly revenue of $68 billion, marking a significant 73% increase from the same period last year, driven by the surging demand for artificial intelligence compute resources.
The company’s data center business was the primary contributor to this growth, accounting for $62 billion of the quarterly revenue. This segment was further divided into $51 billion from compute revenue, primarily driven by GPUs, and $11 billion from networking products such as NVLink. CEO Jensen Huang described the demand for AI compute as “completely exponential” during an analyst call, noting that even six-year-old GPUs deployed in cloud data centers are fully utilized, and pricing for these services has increased.
For the full fiscal year, Nvidia generated $215 billion in revenue. Despite the recent lifting of U.S. export restrictions, Nvidia reported zero revenue from chip exports to China in this quarter. CFO Colette Kress stated that while the U.S. government approved small quantities of H200 products for China-based customers, these shipments have not yet generated revenue. Kress added that Nvidia does not know if further imports will be permitted.
Kress warned that competitors in China are making progress and could disrupt the global AI industry structure long-term. She referenced recent IPOs, specifically citing Moore Threads’ December listing, as evidence of this growing competitive pressure. Huang addressed Nvidia’s reported $30 billion investment partnership with OpenAI, stating that the two companies are working toward an agreement and that Nvidia believes they are close. However, Nvidia’s filings with the U.S. Securities and Exchange Commission (SEC) stated that there is “no assurance” an investment will occur.
Huang also mentioned existing partnerships with Anthropic, Meta, and Elon Musk’s xAI. He defended the sustainability of current capital expenditure levels in the technology sector, arguing that in the current AI environment, compute directly translates to revenue because tokens cannot be generated without compute, and revenue growth depends on token generation. Huang stated the industry has reached an inflection point where tokens are both productive for customers and profitable for cloud service providers.
