Nvidia Q2 Revenue Exceeds Expectations, Setting Record for AI Sector

August 29, 2024 02:03 PM AEST | By Team Kalkine Media

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Nvidia Q2 Revenue Exceeds Expectations, Setting Record for AI Sector — Image source: shutterstock

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Nvidia’s recent Q2 earnings call has set a bullish tone for the artificial intelligence sector, as the company reported a revenue of $30 billion, surpassing prior estimates by approximately $2 billion. CFO Colette Kress highlighted that this figure exceeded forecasts by around 7%, continuing the firm’s trend of record-breaking performance. This positive outcome has generated a wave of optimism in the market, particularly as the artificial intelligence industry looks toward future growth.

During the earnings call on August 28, Kress shared that Nvidia anticipates even stronger results in the upcoming quarter, projecting revenues of $32.4 billion for Q3. The next earnings call is scheduled for November 20. The growth is attributed to strong sales in (GPU), the upcoming launch of the Blackwell chip series, and robust performance in data services, especially in the Chinese market.

The Blackwell platform, a key focus for Nvidia, is slated for production to begin in the fourth quarter, with demand expected to outstrip supply well into the following year. Kress noted that the high demand for Blackwell’s hardware and software suite will likely drive further revenue increases.

The Q2 results provide reassurance against concerns of a potential slowdown in the AI sector. Analysts view Nvidia’s performance as a significant indicator of the industry’s trajectory. The company's ability to exceed earnings expectations solidifies its position as a leading entity in the AI field.

The impact of Nvidia’s performance on the broader AI sector remains to be seen, but the results are seen as a positive signal for the industry’s direction. Nvidia’s strong earnings and optimistic outlook suggest continued growth and leadership within the AI market.

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