Nvidia is forecasting quarterly revenue of around £80 billion (108 billion US dollars) within the coming months, a figure that would place it among a small group of technology giants to surpass the equivalent of 100 billion US dollars in a single quarter. Amazon, Apple and Alphabet have all previously reached that benchmark.
The projection follows a record period for the chipmaker, underlining the extraordinary pace of growth being driven by demand for artificial intelligence hardware.
Record Revenue and Rising Profits
In its most recent earnings report, Nvidia said it generated a record 96.2 billion US dollars (roughly £71 billion) in overall revenue during the past quarter, an increase of more than 10 billion US dollars on the previous three-month period. Data centre revenue alone more than doubled year on year to a record 89 billion US dollars (about £66 billion).
The company’s profits also more than doubled, reaching 59.7 billion US dollars (approximately £44 billion). The scale of these results reflects the central role Nvidia now plays in supplying the processors that power large-scale AI systems.
Consumer Business Under Pressure
Nvidia’s edge computing category, which includes its consumer gaming operations, accounted for 7.2 billion US dollars (around £5 billion) of revenue in the latest quarter. That represented a 27 percent rise year on year, though the company noted slower consumer PC sales that were tempered by elevated memory and systems prices.
Ongoing component shortages continue to push up the cost of Nvidia’s consumer graphics cards. The company also warned of price increases for its AI chips ahead of its earnings report, pointing to continued pressure on pricing across its product lines.
With its guidance pointing towards roughly 108 billion US dollars (about £80 billion) in the current quarter, Nvidia is on course to join the ranks of companies reporting more than 100 billion US dollars in three-month revenue.
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Image: theverge.com
