NVIDIA (Nov 2024)

Record Revenue: NVIDIA achieved record revenue of $35.08 billion, exceeding expectations and showcasing the robust demand for their AI-powered solutions. All market platforms experienced significant year-over-year and sequential growth. ("Revenue of $35.082 billion was up 17% sequentially and up 94% year-on-year and well-above our outlook of $32.5 billion.") Data Center Dominance: Data Center revenue reached an unprecedented $30.8 billion, driven by the exceptional demand for NVIDIA Hopper H200 GPUs. The rapid adoption of accelerated computing and AI across various industries fueled this growth. ("Another record was achieved in Data Center. Revenue of $30.8 billion, up 17% sequential and up 112% year-on-year.") Blackwell Launch and Supply Constraints: The highly anticipated Blackwell architecture successfully completed its mask change, leading to improved production yields. Blackwell shipments are set to commence in Q4 FY25, ramping into FY26. However, demand is expected to outpace supply for several quarters. ("Blackwell production is in full steam... the supply chain team is doing an incredible job... and we're going to continue to work hard to increase Blackwell through next year.") Three Pillars of AI Scaling: Jensen Huang highlighted three ways AI is scaling: pre-training, post-training, and inference time scaling. This multifaceted approach drives strong demand for NVIDIA infrastructure, as foundation models continue to evolve and become more sophisticated. ("Foundation model pre-training scaling is intact and it's continuing... What we're learning, however, is that it's not enough, that we've now discovered two other ways to scale.") Gross Margin Moderation: The initial ramp of Blackwell will lead to a moderate decline in gross margins to the low 70s, primarily due to the complexity and various configurations of the new architecture. ("As Blackwell ramps, we expect gross margins to moderate to the low 70s. When fully ramped, we expect Blackwell margins to be in the mid-70s.")