NVIDIA recently reported a monumental performance for the fourth quarter and the fiscal year 2024, marking significant strides in revenue growth across various sectors. The fourth quarter saw revenues soar to $22.1 billion, a staggering 265% increase from the previous year and a 22% rise sequentially.  What gets lost in the big numbers is that Data Center revenue, the bulk of NVIDIA sales (80 plus percent), grew by a stunning 409 percent y/y; that’s the AI kicker. folks.  

The fiscal year rounded off with $60.9 billion in revenue, climbing 126% year-over-year. A notable highlight is the Data Center sector, which set a new record in the fourth quarter with a 409% increase from the prior year, largely fueled by the high demand for the NVIDIA Hopper GPU computing platform and InfiniBand solutions. This growth trend continued across the fiscal year, with Data Center revenue up 217%.

The surge in demand was primarily driven by large cloud providers, accounting for over half of the Data Center revenue, catering to both internal workloads and external customers. NVIDIA’s AI infrastructure saw broad adoption across various industry verticals, including automotive, financial services, and healthcare. Despite a significant decline in sales to China due to U.S. licensing requirements, Data Center compute and Networking revenue showed robust growth. Thanks to the GeForce RTX 40 SUPER Series GPUs, the Gaming segment also reported growth. Professional visualization and automotive sectors witnessed mixed results, with the latter seeing a slight dip year-over-year and an increase in self-driving platforms.

Base Effects

There will be a dampening base effect, slowing revenue growth.  Growing Data Center revenues 4x on the Q4FY23 low base of $3.6 billion will be extremely difficult to repeat on a Q4FY24 base revenue of $18.4 billion.   

Gross Margins = 77%

Looking ahead to the first quarter of Fiscal 2025, NVIDIA anticipates the following financial outlook:

• The company forecasts revenue to reach approximately $24.0 billion, subject to a plus or minus 2% variance.
• Gross margins, on both a GAAP and non-GAAP basis, are projected to stand at 76.3% and 77.0%, respectively, with a potential fluctuation of plus or minus 50 basis points.

Key Facts:

• Q4 revenue hit $22.1 billion, up 265% year-over-year.
• Fiscal year revenue reached $60.9 billion, a 126% increase from the previous year.
• Data Center revenue in Q4 soared by 409% year-over-year.
• Fiscal year Data Center revenue grew by 217%.
• Over half of Q4 Data Center revenue came from large cloud providers.
• Data Center sales to China dropped significantly in Q4.
• Data Center compute revenue surged by 488% year-over-year in Q4.
• Networking revenue increased by 217% year-over-year in Q4.
• Gaming revenue grew by 56% year-over-year, with fiscal year revenue up 15%.
• Automotive revenue saw a 4% decrease year-over-year in Q4 but a 21% increase for the fiscal year.