Nvidia Doubles Revenue in 2024: Blackwell Drives Growth

Key Takeaways

1. Nvidia’s revenue for fiscal year 2024 surged by 114% to $130.5 billion, driven primarily by demand for AI technologies.
2. The Data Center segment achieved a record $35.6 billion in revenue for Q4, a 93% increase year-over-year, and $115.2 billion for the entire year, climbing 142%.
3. Strategic partnerships with major cloud service providers like AWS, Google Cloud, and Microsoft Azure significantly fueled AI demand.
4. Nvidia increased production of Blackwell AI supercomputers, contributing to substantial sales in the gaming and AI PC segment, which generated $11.4 billion in revenue.
5. Despite a 48% rise in operating expenses, Nvidia’s net income rose by 130% to $74.2 billion for the year.

Nvidia shared its financial results for the fiscal year 2024, showing that its revenue soared by 114% to reach $130.5 billion. This impressive growth, revealed on Wednesday, was largely driven by the strong demand for Artificial Intelligence (AI) technologies.

Record-Breaking Data Center Revenue

A significant contributor to these results was the Data Center segment, which achieved a remarkable $35.6 billion in revenue for the fourth quarter. This marks a 93% increase compared to last year and a 16% rise from the previous quarter. For the entire year, this segment saw its revenue climb 142%, hitting an all-time high of $115.2 billion.

AI Demand Fuels Growth

The company attributed this growth in the Data Center segment to the surging demand for AI capabilities, bolstered by strategic partnerships with major cloud service providers such as AWS, Google Cloud, and Microsoft Azure.

Jensen Huang, the founder and CEO, emphasized the importance of Blackwell in the annual results. “The demand for Blackwell is incredible as reasoning AI brings in another scaling law — having more compute for training makes models smarter, and more compute for long thinking leads to smarter answers,” he stated.

Massive Production and Gaming Segment

Throughout the year, Nvidia significantly increased the production of Blackwell AI supercomputers, which enabled the company to generate billions in sales during its first quarter.

The gaming and AI PC segment also contributed notably, generating $11.4 billion in revenue, which represents a 9% increase year-over-year.

Operating expenses for the full fiscal year rose by 48%. The company explained that this increase was mainly due to higher compensation and benefits costs stemming from employee growth and salary increases, along with engineering development, computing, and infrastructure costs related to new product launches.

Despite these rising expenses, Nvidia’s net income saw a remarkable increase of 130%, reaching $74.2 billion for the year.

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