Nvidia reported fiscal fourth-quarter results that beat Wall Street's earnings and sales forecasts and said current-quarter earnings will be better than expected, even despite elevated expectations for massive growth. Nvidia shares rose about 10%.
Nvidia has been a major beneficiary of the tech industry's recent obsession with large artificial intelligence models that run on the company's expensive server GPUs.
Nvidia CEO Jensen Huang addressed investor concerns on a call with analysts that the company may not be able to sustain that kind of growth or sales level for a full year.
Nvidia's net income for the quarter was $12.29 billion, or $4.93 per share, up 769% from $1.41 billion, or 57 cents per share, last year. Nvidia's overall revenue grew 265% year over year, driven by strong sales of server AI chips, particularly the Hopper line and the H100 specifically.
Sales of the company's data center business, which now makes up the majority of Nvidia's revenue, rose 409% to $18.40 billion. Most of the company's data center sales came from large cloud providers. At the same time, Nvidia said its data center revenues were affected by recent US restrictions on the export of advanced semiconductors for artificial intelligence to China, CNBC reports.
The company's gaming business, which includes graphics cards for laptops and PCs, grew only 56% year-over-year to $2.87 billion. Gaming graphics cards were Nvidia's core business before its AI chips began to gain traction, and some Nvidia graphics cards can be used for AI.
Nvidia's smaller businesses haven't seen the same explosive growth. Its auto-related business fell 4% to $281 million, while its OEM and other business, which includes cryptographic chips, rose 7% to $90 million. Nvidia's business, which produces graphics equipment for professional applications, grew 105% to $463 million.
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