Nvidia's Q2 win: King of generative AI revolution

Onur Demirkol
Aug 24, 2023

After the market closed on Wednesday, Nvidia reported its Q2 earnings, and according to the reports, the company doubled its revenue compared to the same quarter last year. Nvidia is surely the leader in the generative AI revolution as the company's CEO Jensen Hunag says, "The world has something along the lines of about a trillion dollars’ worth of data centers installed in the cloud. And that trillion dollars of data centers is in the process of transitioning into accelerated computing and generative AI. We’re seeing two simultaneous platform shifts at the same time.”

Nvidia has emerged as the industry's primary source of generative AI. The A100 and H100 AI processors of the company are used to construct and run AI applications. Over the last year, demand for these applications has gradually increased, and technology is adjusting to serve them.

“A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI,” Nvidia founder and CEO Jensen Huang said.


Nvidia's Q2 numbers are above Wall Street projections

Nvidia announced second-quarter sales of $13.51 billion above Wall Street projections and was more than twice the $6.7 billion it posted in the same period last year. Yahoo Finance polled analysts, who forecasted Q2 sales of $11.22 billion.

Nvidia announced GAAP net income of $6.18 billion, up from $656 million in the same quarter last year – an almost ninefold increase. Nvidia's net income has risen dramatically from the first quarter, when it posted earnings of $2.04 billion. Its profits per diluted share were $2.48 for the quarter, up 854% from last year's period. Yahoo Finance polled analysts, who predicted profits per diluted share of $2.09.

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The findings demonstrate how drastically its business has transformed. The company's gaming division was originally the primary source of revenue. While gaming revenue increased 22% year on year in the second quarter to $2.49 billion, it is now eclipsed by its data center sector. Nvidia's data center division achieved $10.32 billion in sales, a 141% increase over the previous quarter and a 171% increase over the previous year.

“This incredible application now gives every everyone two reasons to transition to do a platform shift from general purpose computing — the classical way of doing computing — to this new way of doing computing accelerated computing,” the CEO said.


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