Nvidia posts record $60 billion in revenue amid increased demand for AI, accelerated computing

Nvidia reported increased demand for generative artificial intelligence (AI) and accelerated computing in its latest earnings report on Feb. 21.

Jensen Huang, founder and CEO of Nvidia, said:

“Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations.”

Huang added that Nvidia RTX has become a “massive PC platform for generative AI” used by 100 million gamers and creators. He further described Nvidia’s Data Center platform and its growth in various areas, noting that vertical industry use is now at a multibillion-dollar level.

Record earnings

Nvidia’s fourth-quarter revenue hit a record high of $22.1 billion — up 265% compared to the previous year. Meanwhile, revenue for the full year stood at $60.9 billion, up 126% compared to 2022.

The company reported a net income of $12.28 billion for the fourth quarter — up 769% annually — while net income for the full year stood at $29.76 billion, up 581% annually.

Diluted EPS for the year stood at $11.93, compared to $1.74 in the previous year.

Nvidia forecasted its revenue to hover around $24.0 billion, with a possible variation of plus or minus 2%. The company’s expected gross margins stand at 76.3% for GAAP and 77.0% for non-GAAP measures, both subject to a possible 50 basis point deviation.

The positive earnings caused NVDA share price to surge 56.88 points, or 8.43%, after hours, despite seeing a negative day. NVDA was trading at $731 per share as of press time, despite closing the day at $674.72.

Those positive results coincide with growth in the company’s stock. NVDA share price, though down 19.80 points (2.85%) today, is up 56.88 points (8.43%) after-hours

Data center division

A significant chunk of the company’s yearly revenue was generated by the data center business, which saw record growth over the past 12 months as AI technology spread across the globe.

Nvidia’s Data Center division reported a record-breaking fourth-quarter revenue of $18.4 billion, marking a 27% increase from the previous quarter and a staggering 409% rise from the previous year — with annual revenue climbing to $47.5 billion.

The growth was driven by several strategic initiatives and partnerships, including collaborations with Google, Cisco, and Amazon Web Services, among others.

Nvidia collaborated with Google to enhance AI platforms, extending these optimizations to NVID