Nvidia’s Record-breaking Fiscal Year 2023 Results: Explosive Growth Thanks to AI

2024-02-21 22:43:30

The American processor manufacturer Nvidia announced this Wednesday its results for fiscal year 2023, a record year in which multiplied its net profit by six thanks to the advance of the Artificial Intelligence (AI).

Nvidia recorded its best figures due to the growing demand around AI: a accumulated profit of US$29,760 million (and 581% more compared to US$4,368 million in 2022) and a billing of US$60,922 million (126% more), according to a statement.

“Accelerated computing and generative AI have reached a tipping point. “Demand is increasing around the world across companies, industries and nations,” founder and CEO said in the note. Jensen Huang.

Nvidia results: Explosive increase in profits thanks to AI

Nvidia, which has been revealing how its business volume has shot every quarteralso recorded records in the fourth and final stretch of the year: a profit of US$12,285 million (769% more) and a turnover of US$22,103 million (265% more).

The company highlighted the good progress of its Data centerwhich represented 78% of its annual revenues, followed by the division of “gaming” (games), which represents 17%, and to a lesser extent, professional visualization and automotive.

The Data Center has been boosted in recent months by demand for the Nvidia Hopper GPU processor, which specializes in training language models, recommendation systems and generative AI applications, according to a document detailing the results.

China sales decline

In the last quarter, more than half of the Data Center’s revenue came from large cloud service providers, and at a geographic level, the drop in sales to China stood out, as had been anticipated, due to the “Government licensing requirements.” from the USA”, indicates the note.

During that period, the company indicated that its operating expenses increased by 23% year-on-year due to a increased hiring and promotion of employees, while at an annual level a charge of US$1.4 billion was recorded for the cancellation of the purchase of the technology company Arm.

The results generated great expectation today on Wall Street, where some analysts predict that the company will deflate soon after the explosive growth of recent months, linked to the rise of AI but also possibly as part of a bubble.

In any case, the results were better than expected and Nvidia shares soared 10% in trading after the stock market closed, in a first good market reaction.

He Nvidia’s stock market value has soared 225% in the last yearand with a capitalization of US$1.72 trillion, it is one of the largest companies on the market, within the group of the “magnificent seven” technology companies along with Apple, Microsoft, Amazon, Meta, Tesla and Alphabet.

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