Nvidia Q2 Earnings Report 2023
Posted:NVIDIA Q2FY23: The Stock Soars as the Company Reported a Massive 422% YoY increase in the Net Income.
NVIDIA recorded revenue of $13.51 billion, up by 88% from Q1FY23, and surged by 101% on a Year-on-Year basis. The surge in revenue was fueled by an increase in demand for its graphics processing units (GPUs) primarily to power artificial intelligence and generative AI models. (Source: NVIDIA)
On a segmental basis, Data Center, which encompasses its critical AI unit recorded second-quarter revenue of $10.32 billion, on a YoY basis it went up by 171%. In addition to cloud providers, big internet companies make up the majority of the company's revenue from its data centers. Data center growth at Nvidia was driven by computing chips also called AI chips. (Source: NVIDIA)
The gaming segment reported revenue of $2.49 billion, up by 11% QoQ and up by 22% on a YoY. The Professional Visualization segment of the company was down by 24% YoY and up by 28% on a QoQ basis and stood at $379 million. The automotive segment of the company recorded revenue of $253 million, down by 15% from the previous quarter and up by 15% YoY. (Source: NVIDIA)
In the second quarter, Nvidia reported a $6.7 billion net income, which represents a whopping 843% increase on a YoY basis and 203% increase QoQ. According to the company, its software contributes to its margin and it is selling more complex products than simple silicon. (Source: NVIDIA).
NVIDIA's gross margin expanded over 25% as compared to the same quarter last year to 71.2% which is incredible for a physical product. (Source: NVIDIA)
Furthermore, the company anticipates that demand will remain high throughout next year, and it has secured increased supply, enabling it to increase the number of chips on hand to sell. (Source: CNBC)
Additionally, Nvidia is integrating its technology into expensive and complicated systems like its HGX box, which integrates eight H100 GPUs onto a single computer. A 35,000-part supply chain is required to assemble one of these boxes, according to Nvidia's statement on August 23. According to reports, HGX boxes can cost as much as $299,999, in contrast to a single H100's bulk pricing, which is estimated to be between $25,000 and $30,000.
For Fiscal 2024, the company expects revenue to be $16.00 billion, plus or minus 2%. (Source: TheVerge).
NVIDIA Stock rose as much as 9% in after-hours trading on August 23. (Source: investing.com)
GraniteShares
GraniteShares
