• Nvidia’s revenue grew by 101% year-over-year in Q2 2024.
• Nvidia’s gaming division also grew, but at a slower pace of 21.7% year-over-year.
• Nvidia’s accounts receivable doubled in Q2 2024, to $7 billion.

Nvidia is experiencing a significant financial surge, as evident in its recently released and eagerly awaited Q2 2024 fiscal year report.

Nvidia’s data center division has emerged as the standout performer, doubling its sales from the previous year and solidifying its position as the primary revenue generator for the company.

Before the data center department, Nvidia’s primary revenue source was the gaming division. However, it’s currently facing challenges with a modest 21.7% yearly growth. This indicates that PC gamers are recognizing the diminishing value of each new generation of Nvidia gaming GPUs.

The company’s shares displayed impressive growth before the earnings report release. However, the stock experienced a partial decline a day earlier, as some potential investors opted to take profits and approached cautiously due to concerns about potential negative impacts from an earnings shortfall.

Nvidia’s Revenue Doubles This Year Due to ChatGPT

Contrary to expectations of falling short of financial projections, the company exceeded predictions and delivered exceptional results. It reported a remarkable $13.5 billion in revenue, marking 88% growth compared to the previous quarter and an impressive 101% increase year over year.

Nvidia’s data center division contributed a staggering $10 billion to the overall revenue, showcasing an enormous sequential surge of 141% and an annual growth of 171%. This remarkable increase can be attributed to robust demand from internet and cloud computing companies.

The company’s CFO provided insight into the significant expansion of data center revenue.

“Strong demand for the NVIDIA HGX platform based on our Hopper and Ampere GPU architectures was primarily driven by the development of large language models and generative AI.”

Nvidia exceeded analyst forecasts with revenue of $2.70 per share. The company surpassed expectations by providing an impressive $16 billion outlook for the current quarter, potentially achieving a remarkable 170% annual growth rate and propelling Nvidia to an entirely new revenue level.

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This guidance of $16 billion exceeds the earlier projection of $12.61 billion.

A doubling of Nvidia’s accounts receivable played a role in this substantial growth. In the prior quarter, this number was $7 billion, compared to $4 billion in the first quarter.

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