NVIDIA's data center revenue increases by 400%.

On February 21st, after the US stock market closed, NVIDIA released its financial report for the fourth quarter. NVIDIA's financial report showed that the sales in the fourth quarter reached 22.1 billion US dollars, a year-on-year increase of 265%, with data center revenue growing by 409% to 18.4 billion US dollars, and net profit reaching 12.29 billion US dollars, a year-on-year increase of 769%. Influenced by the news, NVIDIA's stock price rose by more than 10% after the market closed. Last week, NVIDIA's market value successively surpassed Amazon and Google, and for the first time broke through 1.8 trillion US dollars.

NVIDIA's data center business includes server AI chips, which have benefited from the fierce competition among global tech giants in the field of AI large models. NVIDIA's AI chips are being sought after by companies, mainly including those based on the Hopper architecture, such as the H100. More than half of the data center AI chips sold by the company go to major cloud giant manufacturers.

Advertisement

On Wednesday, after Google released the open-source version of the AI large model Gemma, NVIDIA stated that it has cooperated with Google to ensure that the Gemma large model runs smoothly on its chips. NVIDIA also stated that it will soon develop chatbot software that works with Gemma, which is being developed to run AI models on Windows PCs.

Meta founder and CEO Mark Zuckerberg said in January that by the end of 2024, Meta's computing infrastructure will have 350,000 H100 chips, indicating that Meta may spend billions of dollars on purchasing NVIDIA's chips.

In response to investors' concerns that NVIDIA may not be able to maintain this rapid growth level throughout the year, NVIDIA founder and CEO Jen-Hsun Huang said in a conference call with analysts: "Fundamentally, we believe that the conditions for sustained growth in 2025 and beyond will still be very good. Due to generative artificial intelligence and the entire industry's shift from CPU to GPU, the demand for NVIDIA GPUs will remain high."

Jen-Hsun Huang also stated that data center revenue is still affected by new US export regulations. In response, NVIDIA has planned to launch a customized chip version for the Chinese market.

He said: "We have reconfigured our products in a way that no software can crack, which took some time, and now we are providing samples to our customers in China."

The market is also paying attention to the supply situation of NVIDIA's next-generation GPU chip B100. In this regard, NVIDIA's CFO Colette Kress stated that although the company has improved the supply of AI chips, it is still expected to be in high demand."The supply of Hopper architecture products is improving, but demand remains very strong, far exceeding supply, and we anticipate that the supply of next-generation products will be constrained," said Kriz during the earnings analyst conference.

Huang Renxun also stated: "Every time we launch a new product, its demand increases from zero to a very large number, and you can't do this overnight."

Currently, NVIDIA remains the main market leader for computer chips used in artificial intelligence research and AI-related products, but competitors such as AMD are catching up. NVIDIA's strong financial report also boosted the stock prices of other semiconductor companies, with AMD's stock price soaring by more than 4% after the market closed that day.

There were also previous reports that NVIDIA is forming a new division to provide customized chips specifically for cloud service providers. If NVIDIA enters the field of customized chips, it will compete with industry leaders such as Broadcom. However, NVIDIA did not comment on this news during the earnings conference.