Nvidia is profiting greatly from the AI boom, gaming revenue on the rise too

This year, Artificial Intelligence has been all the rage in the tech world. Nvidia has been focusing on AI for years already and its latest quarterly earnings report shows that this was indeed a very good idea, with Nvidia enjoying a huge boom in revenue. 

In recent months, a number of companies have announced plans to upgrade their data centres with Nvidia's H100 GPUs. With the hype around AI reaching an all-time high and attracting more and more investment, Nvidia has stood to profit, with revenues reaching $13.51 billion over Q2. This is an 88 percent increase versus Q1 of this year and a 101 percent increase versus Q2 2022.

$10.32 billion of that revenue comes Nvidia's Data Center business, which saw a 141 percent gain versus Q1 and a 171 percent gain versus Q2 2022. Speaking on Nvidia's latest earnings results, CEO, Jensen Huang, said: “A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI”.

Nvidia is expecting its earnings to remain strong in Q3 as well, forecasting revenues of around $16 billion. This should be partially driven by the introduction of the GH200 Superchip for AI and HPC workloads, which begins shipping this quarter.

On the gaming (GeForce) side, Nvidia also saw gains. While many of us have taken issue with the consumer graphics pricing situation this generation, customers are still paying. Nvidia's Q2 gaming revenues rose to $2.49 billion, up 22% versus the same time last year.

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KitGuru Says: Nvidia saw where AI was going and got on the train early. The company is now seeing that work pay huge dividends with sharply rising revenues. 

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