NVIDIA Earnings Call $NVDA Q4 2023 10Q

[NYSE: NVDA]

FEBRUARY 22, 2023

Key Takeaway from NVIDIA earnings call $NVDA Q4 2023 10Q:

NVIDIA’s Q4 2023 earnings call highlighted strong revenue growth, particularly in the data center and automotive sectors. The company’s focus on AI adoption, generative AI applications, and partnerships with cloud service providers indicates a commitment to making AI accessible to enterprises. The gaming segment showed sequential growth driven by the new GeForce RTX GPUs, while the Pro visualization segment saw an increase in desktop workstation sales. NVIDIA’s strategic partnerships and certifications in the automotive sector further solidify its position in the market. Overall, NVIDIA continues to innovate and expand its offerings across various industries.

 

Key points from NVIDIA earnings call $NVDA Q4 2023 10Q

– Q4 revenue was $6.05 billion, up 2% sequentially and 21% year-on-year.

– Full-year revenue was $27 billion, flat from the previous year.

– Data center revenue was $3.62 billion, down 6% sequentially but up 11% year-on-year.

– Hyperscale customer revenue showed strong sequential growth, but fell short of expectations due to some cloud service providers pausing their build plans at the end of the year.

– Networking revenue grew, but slightly below expectations due to softer demand for general-purpose CPU infrastructure.

– Lower sales in China contributed to the sequential revenue decline in the data center segment, reflecting COVID and domestic issues.

– Adoption of the new flagship H100 data center GPU is strong, surpassing the A100 in just the second quarter of its ramp.

– AI adoption is at an inflection point, with generative AI applications improving productivity in various tasks across industries.

– NVIDIA announced a partnership with Deutsche Bank to accelerate the use of AI and machine learning in financial services.

– NVIDIA’s InfiniBand and HPC optimized Ethernet platforms are experiencing growing demand in the networking sector.

– NVIDIA is expanding its software and services, including the release of NVIDIA AI Enterprise Version 3.0 and upcoming NeMo and BioNeMo large language models services.

– NVIDIA is partnering with major cloud service providers to offer NVIDIA AI cloud services, making AI more accessible to enterprise customers.

– Gaming revenue was $1.83 billion, up 16% sequentially, driven by strong reception of the 40 Series GeForce RTX GPUs.

– Pro visualization revenue was $226 million, up 13% sequentially, with strength in desktop workstations in the automotive and manufacturing industrial verticals.

– Automotive revenue was a record $294 million, up 17% sequentially, driven by AI automotive solutions and program ramps at EV and traditional OEM customers.

– NVIDIA announced a strategic partnership with Foxconn to develop automated and autonomous vehicle platforms, using the NVIDIA DRIVE platform.

– The NVIDIA DRIVE operating system received safety certification, meeting the high standards required for autonomous transportation.

– GAAP gross margin was 63.3%, and non-GAAP gross margin was 66.1%.

– NVIDIA is focusing on expanding its software offerings and cloud adoption, with NVIDIA AI cloud services and NVIDIA DGX cloud.

 

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