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Nvidia had a bad quarter. Sales tripled compared to the previous year, largely thanks to the data center and, somewhat surprisingly, the Infiniband network solution. Gaming is growing
Nvidia had a bad quarter. Sales tripled compared to the previous year, largely thanks to the data center and, somewhat surprisingly, the Infiniband network solution. Gaming is growing but disappearing into the shadows.
Nvidia raised $18.1 billion in the third quarter of this year. Sales tripled compared to the same quarter last year, which reached $5.9 billion. Compared to the previous quarter, sales also increased by 34 percent to $13.5 billion.
As you might expect, the growth isn’t driven by players. The appetite for powerful AI chips, particularly from hyperscalers, is good for CEO Jensen Huang’s coffers. InfiniBand is also doing well, with revenue growing fivefold. $14.65 billion comes from computers and networks. In contrast, the gaming segment generated “barely” $2.86 billion in revenue, which is still an increase compared to last quarter and last year.
The numbers show what kind of company Nvidia has become. It was only in 2020 that sales in the data center division exceeded those in the gaming industry for the first time. Three years later, gaming is little more than icing on the data center cake. AI and its ecosystem are the biggest drivers for the company.
Nvidia states that the supply chain is in order and the production of new chips is running smoothly. Grace and Grace Hopper will therefore find their way to the customer relatively quickly.
Nvidia itself is forecasting sales of $20 billion for the next quarter. That’s a modest forecast that takes slower growth into account. Nvidia can thank the US government for this, as export restrictions on advanced chips are curbing sales in the huge Chinese market.
Source: IT Daily
As an experienced journalist and author, Mary has been reporting on the latest news and trends for over 5 years. With a passion for uncovering the stories behind the headlines, Mary has earned a reputation as a trusted voice in the world of journalism. Her writing style is insightful, engaging and thought-provoking, as she takes a deep dive into the most pressing issues of our time.
