Nvidia has reported record-breaking revenue for its second quarter of fiscal 2024, surpassing Wall Street’s expectations. The company’s Q2 revenue reached $13.51 billion, a significant increase of 101% year-over-year and sequentially. The data center segment experienced the most substantial growth, with a 171% annual increase and a 141% sequential increase, contributing $10.32 billion to the total revenue. Nvidia’s ability to drive rapid product development, establish strategic alliances, and attract software developers has been instrumental in the growth of AI and large language model (LLM) adoption.
Nvidia’s strategy has resulted in a remarkable 229% growth in total revenue over the past five quarters, reaching a record $13.5 billion in Q2 FY2024. The company’s gross margin also saw a significant increase from 45.9% to 71.2% compared to the previous year. The rising profitability allows for substantial investment in research and development (R&D), with new products or platforms being launched every six months. The strong demand for data center products, particularly in generative AI and LLMs, has been a driving force behind Nvidia’s success.
The explosive growth in data center revenue reflects the strong demand from hyperscale cloud service providers and large internet companies investing in infrastructure for LLMs and gen AI. Nvidia’s data center business is performing so well that it has the potential to deliver $12 to $13 billion in Q3. To maintain its leading position, Nvidia is doubling down on R&D, investing in next-generation platforms such as Hopper architecture, which enhances AI workload accelerated computing. The company is also prioritizing its AI software stack, including the Nvidia AI Enterprise suite, to make it easier for organizations to leverage Nvidia’s AI solutions. With increasing competition, Nvidia’s commitment to innovation and complete AI infrastructure positions the company well to meet the rising demand for enterprise AI.
