Nvidia’s revenue increased almost 100% year over year due to strong demand for AI chips

The biggest increase was shown by Nvidia’s data center revenues: the figure increased by 112% to $30.77 billion, compared to $14.51 in July-September last year. The company predicts that its revenue in the fourth quarter of 2024 will increase to $37.5 billion, which almost matches the market consensus forecast of $37 billion.

Analysts are closely watching how Nvidia’s new generation of AI chips, called Blackwell, could impact the tech giant’s near-term revenue growth, and whether the chips face challenges as they roll out, the Financial Times noted. . Previously, The Information reported that Blackwell overheats when connecting to servers.

Blackwell were announced in March. They are primarily intended for developments in the field of AI and can provide twice the power for training neural networks compared to the current generation of chips.

In early November, Nvidia became the first company in history whose market capitalization exceeded $3.6 trillion. Reuters noted that this amount is greater than the value of Netflix, Walmart, JPMorgan, Visa, Eli Lilly and UnitedHealth Group combined.

Since the beginning of the year, the tech giant’s shares have grown more than 200%, writes FT. This indicator was facilitated by the technological race among companies to develop and implement AI technologies, the newspaper notes. At 17:52 Moscow time, Nvidia shares are trading at $146.3 per share.