NVIDIA recorded $60 billion in sales due to growing demand for AI and accelerated computing.

Nvidia reported growing demand for generative artificial intelligence (AI) and accelerated computing in its latest earnings report dated February 21st.

Jensen Huang, founder and CEO of NVIDIA, said:

“Accelerated computing and generative AI have reached a tipping point. “Demand is surging across businesses, industries and countries around the world.”

Huang added that Nvidia RTX has become a “massive PC platform for generative AI” used by 100 million gamers and creators. He also discussed Nvidia’s data center platform and its growth in various areas, noting that vertical industry usage has now reached multibillion-dollar levels.

record earnings

NVIDIA’s fourth quarter revenue reached a record high of $22.1 billion, up 265% from the same period last year. Meanwhile, annual sales reached $60.9 billion, an increase of 126% compared to 2022.

The company reported fourth-quarter net income of $12.28 billion, a 769% year-over-year increase, and full-year net income of $29.76 billion, a 581% year-over-year increase.

This year’s diluted earnings per share (EPS) is $11.93, compared to $1.74 a year ago.

NVIDIA forecasts revenue to be approximately $24 billion, with a +/- 2% variance. The Company’s projected gross margin is 76.3% on a GAAP basis and 77.0% on a non-GAAP basis, both of which are subject to a 50 basis point deviation.

The positive earnings helped NVDA stock surge 56.88 points, or 8.43%, after hours despite the negative day. NVDA is trading at $731 per share at press time, despite closing the day at $674.72.

These positive results are consistent with the growth of the company’s stock. NVDA stock was down 19.80 points (2.85%) today but up 56.88 points (8.43%) in the after-hours.

Data Center Division

A significant portion of the company’s annual revenue is generated from its data center business, which has seen record growth over the past 12 months as AI technology spreads globally.

Nvidia’s data center division reported record fourth-quarter revenue of $18.4 billion, up 27% from the previous quarter and a whopping 409% from the previous year, bringing full-year revenue to $47.5 billion.

This growth has been driven by several strategic initiatives and partnerships, including collaborations with Google, Cisco, Amazon Web Services, and others.

Nvidia has partnered with Google to enhance its AI platform and extend these optimizations to NVID.