Nvidia--the largest company on planet Earth--has released its latest earnings report, and it was another blockbuster quarter for the technology giant. However, gaming revenue came in lower than expected.
Nvidia surpassed Wall Street's expectations for revenue and earnings-per-share. The company achieved record quarterly revenue of $68.1 billion, up 73% year-over-year. The overwhelming majority of Nvidia's revenue for the period came from its Data Center division, which brought in $62.3 billion, up 75% year-over-year. For the full year, Nvidia made revenue of $215.9 billion, up 65%.
Not all of Nvidia's divisions met expectations, though. Gaming revenue was $3.7 billion during the quarter, which was up 47% year-over-year, with full-year revenue rising 41% to a record $16 billion. Those are positive, growing numbers, but the guidance for gaming during the quarter was $4 billion, so Nvidia missed by hundreds of millions of dollars.
Nvidia said its gaming revenue during the quarter was driven by strong demand for the Blackwell platform. Also during the quarter, Nvidia announced DLSS 4.5, a new AI-powered update for graphics quality. What's more, Nvidia launched G-Sync Pulsar during the quarter.
Nvidia stock surged after the earnings report to above $200 per share, but later receded and now hovers around where it closed on Wednesday. The company's stock has exploded in recent years, and some are wondering how Nvidia can keep the train running at such a pace. CEO Jensen Huang said on an earnings call that Nvidia still has lots of room to grow, and it is his hope that a great variety of business ecosystems--including biology, manufacturing, robotics, and physics--can be "built on top of Nvidia."
Huang added: "Our customers are racing to invest in AI compute." He added: "Computing demand is growing exponentially."
Plenty of people do not see the bright future for Nvidia and AI in general that Huang and the Nvidia bulls do. One prominent example is investor Michael Burry, who famously bet against the housing market in 2008 and made huge profits. He was played by Christian Bale in the movie The Big Short. Burry is now betting against Nvidia, saying the AI-fueled boom for chips is going to pull back in a big way.
Many also hold the belief that the further push into AI could lead to job losses and other negative societal consequences. Even Huang himself has foreshadowed tough times to come for some workers, saying in an interview that if your job is the task, you're at risk for being replaced by AI.
In the world of gaming, more developers than ever believe generative AI is hurting the games industry. Microsoft Gaming's new CEO, Asha Sharma, comes from an AI background, but she has claimed to be against "soulless AI slop" and wants to help Xbox teams make games with "deep emotional resonance."
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Nvidia surpassed Wall Street's expectations for revenue and earnings-per-share. The company achieved record quarterly revenue of $68.1 billion, up 73% year-over-year. The overwhelming majority of Nvidia's revenue for the period came from its Data Center division, which brought in $62.3 billion, up 75% year-over-year. For the full year, Nvidia made revenue of $215.9 billion, up 65%.
Not all of Nvidia's divisions met expectations, though. Gaming revenue was $3.7 billion during the quarter, which was up 47% year-over-year, with full-year revenue rising 41% to a record $16 billion. Those are positive, growing numbers, but the guidance for gaming during the quarter was $4 billion, so Nvidia missed by hundreds of millions of dollars.
Nvidia said its gaming revenue during the quarter was driven by strong demand for the Blackwell platform. Also during the quarter, Nvidia announced DLSS 4.5, a new AI-powered update for graphics quality. What's more, Nvidia launched G-Sync Pulsar during the quarter.
Nvidia stock surged after the earnings report to above $200 per share, but later receded and now hovers around where it closed on Wednesday. The company's stock has exploded in recent years, and some are wondering how Nvidia can keep the train running at such a pace. CEO Jensen Huang said on an earnings call that Nvidia still has lots of room to grow, and it is his hope that a great variety of business ecosystems--including biology, manufacturing, robotics, and physics--can be "built on top of Nvidia."
Huang added: "Our customers are racing to invest in AI compute." He added: "Computing demand is growing exponentially."
Plenty of people do not see the bright future for Nvidia and AI in general that Huang and the Nvidia bulls do. One prominent example is investor Michael Burry, who famously bet against the housing market in 2008 and made huge profits. He was played by Christian Bale in the movie The Big Short. Burry is now betting against Nvidia, saying the AI-fueled boom for chips is going to pull back in a big way.
Many also hold the belief that the further push into AI could lead to job losses and other negative societal consequences. Even Huang himself has foreshadowed tough times to come for some workers, saying in an interview that if your job is the task, you're at risk for being replaced by AI.
In the world of gaming, more developers than ever believe generative AI is hurting the games industry. Microsoft Gaming's new CEO, Asha Sharma, comes from an AI background, but she has claimed to be against "soulless AI slop" and wants to help Xbox teams make games with "deep emotional resonance."
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