Six billion dollars profit in one quarter: Nvidia is doing better than ever. Thanks to the AI ​​craze, the company’s GPUs are selling like hot cakes.

Nvidia announced its quarterly results last night. Before you open the press release, sit down because it’s packed with staggering numbers. First the turnover: It amounted to 13.5 billion dollars. That leaves Nvidia with GAAP net income of $6.2 billion. The profit is almost as high as the total revenue that Nvidia reported exactly a year ago (6.7 billion).

A closer look at the numbers shows us that one sector is head and shoulders above the rest: the AI ​​and data center industry. At $10.3, it accounted for the lion’s share of total income. Compared to the previous year, the increase is a whopping 171 percent and even compared to the previous quarter, we are talking about growth of 141 percent.

king of hype

It’s safe to say that Nvidia is the big winner of the AI ​​hype. Everyone wants to do something with AI today, preferably with generative AI. But artificial intelligence requires solid GPUs and Nvidia has a virtual monopoly on it. AMD is trying to break that, but those who need GPUs today turn to Nvidia first.

Nvidia also supplies custom software and applications with these graphics chips. These can make it more difficult for companies to switch to another provider. This allows Nvidia to achieve high margins on its products: With the H100 accelerators, for example, it collects tens of thousands of euros in profit per unit sold. This is how you quickly make billions in profits.

How the AI ​​hype will develop is difficult to predict. Gartner predicts that AI fever is slowly peaking. After that, the market would gradually move towards a status quo where investment would reach a more constant level. Nvidia hopes the madness will continue for a while.