Nvidia Revenue Skyrockets as CEO Jensen Huang’s Wealth Hits $44 Billion
Nvidia, a frontrunner in the AI sector, has demonstrated remarkable financial success in its latest quarterly report, with revenue tripling compared to the previous year. The company’s third-quarter financials revealed revenue of $18.12 billion, surpassing Wall Street predictions of $16.18 billion. This achievement signifies a substantial 206% increase compared to the $5.9 billion recorded in the same quarter last year, marking a 34% surge from the previous quarter’s $13.5 billion.
A standout aspect of Nvidia’s financial prowess is its net income, reaching an impressive $9.24 billion in Q3. This figure is in stark contrast to the $680 million reported in the third quarter of 2022, reflecting an extraordinary year-over-year rise of 1,259%.
Nvidia’s data center business, inclusive of its lucrative AI products, reported record-breaking revenue of $14.51 billion. This represents a remarkable 41% increase from the previous quarter and an astounding 279% growth compared to a year ago. Notably, 50% of this segment’s revenue originated from cloud infrastructure providers, while the remaining half came from large enterprises and consumer internet entities.
The gaming segment witnessed a robust rebound, recording an 81% increase to $2.86 billion, marking a 15% growth from the previous quarter. Professional Visualization revenue displayed an impressive 108% year-over-year growth, amounting to $416 million. Automotive revenue maintained stability, registering a 4% year-over-year increase at $261 million. These variations underscore Nvidia’s predominant identity as an AI-focused company rather than a gaming-centric one.
While Nvidia celebrates its financial achievements, concerns loom over US export controls on AI products to China. The Biden administration reinforced restrictions in late October, including products such as A800, H800, and RTX 4090 in the list of essentially banned items. Nvidia’s CFO, Colette Kress, acknowledged that the licensing requirements had a limited impact on Q3 revenue but anticipates a substantial decline in sales to China in the fourth quarter of fiscal 2024. Despite this, Kress remains optimistic, stating that the decline will likely be offset by robust growth in other regions.
Nvidia’s stock has witnessed an extraordinary surge of around 240% this year, primarily driven by heightened enthusiasm surrounding AI, despite industry skepticism about its overhype. This surge has significantly contributed to CEO Jensen Huang’s net worth, catapulting him into the ranks of the world’s top 30 richest individuals with a staggering $44 billion fortune.
