Nvidia, a leading semiconductor company, has announced a remarkable 262% increase in revenue for the quarter ending in April 2024, attributing the growth to the high demand for their AI chips. The introduction of new Blackwell chips and impressive financial results signal continued success in the AI chip market.
Nvidia’s Revenue Surges 262% Due to High AI Chip Demand
Nvidia, a leading semiconductor company based in Silicon Valley, reported a substantial 262% increase in revenue for the quarter ending in April 2024, driven by escalating demand for artificial intelligence (AI) chips. The company announced revenues of $26 billion, surpassing expectations of $24.7 billion. Net income rose to $14.9 billion, with diluted earnings per share soaring over 600% to $5.98.
CEO Jensen Huang hailed the results, attributing the growth to their AI data center graphics processing units (GPUs) and introducing the new Blackwell chips. Huang emphasized that these new chips will generate “a lot” of revenue, with anticipated shipping this quarter. Nvidia’s data center revenue alone grew by 427%, reaching $22.6 billion.
The company also announced a 10-for-1 stock split, effective June 7, and increased its quarterly cash dividend by 150%. Nvidia’s stock, which has risen more than 90% this year, went up an additional 6% in after-hours trading. Since the beginning of 2023, Nvidia’s market capitalization has surged to $2.3 trillion, making it the third-most valuable US-listed company.
Nvidia’s GPUs remain critical for AI advancements at major tech companies like Google, Microsoft, Meta, and Amazon, who have said their AI-related spending will continue to be high throughout 2024. Rivals such as AMD and Intel are also rolling out competing AI data center chips but have seen less impressive results.
The introduction of Blackwell chips, which claim to be twice as powerful as existing models, positions Nvidia for continued robust performance. Concerns about demand transitioning between product lines were alleviated by Huang, who indicated that demand for both Hopper and Blackwell lines remained “way ahead of supply.”
Overall, Nvidia’s growth reflects the surging interest and investment in AI technology, solidifying its role as a cornerstone in the AI chip market.
