Nvidia just made $6 billion in pure profit over the AI boom

Approximately three months after becoming a part of the prestigious trillion-dollar club, which consists of industry giants like Apple, Amazon, Google, and Microsoft, Nvidia is now generating significantly higher revenue than ever before, thanks to the tremendous growth of artificial intelligence.

In the Q2 2024 earnings, the company announced that it has earned a total of $13.5 billion in revenue since May. This remarkable achievement can be attributed to the high demand for its generative AI chips, which easily surpassed any challenges faced in selling desktop and laptop GPUs in a declining PC industry. The data center sector contributed a staggering $10.32 billion to the overall revenue, experiencing a remarkable growth of over 100% in just three months. Consequently, Nvidia's profit amounted to $6.188 billion, marking an impressive increase of 843% compared to the previous year. Although the gaming sector fell short of the revenues achieved during the pandemic, it still managed to exhibit a growth of 22% year over year, generating $2.48 billion in revenue.

Nvidia predicts that it will generate a revenue of $16 billion in the upcoming quarter, marking another significant increase. They plan to release their next artificial intelligence chip, the GH200, in mid-2024, without revealing its price. Consequently, the demand for the existing AI chips will continue in the next quarter. Following this news, Nvidia's stock price has already surged by 8.5 percent during after-hours trading.

Nvidia's main competitors, Intel and AMD, have not offered compelling solutions to match Nvidia's generative AI silicon. AMD's MI300 is expected to launch in the fourth quarter of this year and be available for use in early 2024. Both AMD and Intel are currently downplaying the significance of incorporating AI chips into cloud servers, with their CEOs assuring that AI features will also be integrated into client chips. Intel CEO Pat Gelsinger phrased it as their goal to "embed AI into every platform we create."

In May, Lisa Su, the CEO of AMD, mentioned to Forbes that if we cast our gaze five years forward, we can expect to witness the integration of artificial intelligence (AI) into every single AMD product. Moreover, she emphasized that this incorporation of AI will play a significant role in driving the company's growth.

We'll inform you if we come across any more intriguing updates during the earnings call.