NVIDIA’s AI Driven Profits Are Incredible

Although It Is Not Expected To Last

NVIDIA made an astounding $18.1 billion in revenue this quarter, of which $14.65 billion came from their Compute & Networking products.   Their actual income was $9.2 billion which represents an increase of 1,259% over this quarter last year, the total revenue was a mere 206% above this time last year which should give you an idea just how happy NVIDIA stock holders are.  The gaming business unit saw an increase of 84%, likely thanks to the recent trend in GPU prices dropping from utter insanity to only incredibly painful.

As you might guess, the majority of the bump came from their AI and HPC products though it would be remise to fail to mention the impressive Infiniband income as well.  For next quarter we should see the release of Grace and Grace Hopper which will help bolster NVIDIA’s revenue, however they will not be enough to allow NVIDIA to maintain such huge growth.  The reason for the expected drop in revenue is due to the new export restrictions to China the US government is now enforcing.  These restrictions did not have an effect on this quarter but going forward NVIDIA will lose between 20 to 25% of their customer base.

With revenues this large, and the parts of the business it mostly came from it looks like calling NVIDIA a GPU company is becoming a little outdated.