Nvidia has another record quarter amid record capex spends

Chip elephantine and world’s astir invaluable institution Nvidia reported record profits successful its astir caller 4th connected Wednesday, arsenic request for AI compute continues to skyrocket.

“The request for tokens successful the satellite has gone wholly exponential,” CEO Jensen Huang said connected a telephone with analysts pursuing the results. “I deliberation we’re each seeing that, to the constituent wherever adjacent our six-year-old GPUs successful the unreality are wholly consumed and the pricing is going up.”

The institution reported $68 cardinal successful gross successful the astir caller quarter, up 73% from the anterior year, with $62 cardinal of that gross coming from the company’s information halfway business.

Notably, Nvidia divided the information halfway gross into $51 cardinal successful compute gross (largely GPUs) and $11 cardinal successful networking products similar NVLink. The institution reported $215 cardinal successful gross for the afloat year.

As successful erstwhile quarters, the institution did not study immoderate gross from spot exports to China, contempt the caller lifting of export restrictions by the U.S. government. “While tiny amounts of H200 products for China-based customers were approved by the US government, they person yet to make immoderate revenue, and we bash not cognize whether immoderate imports volition beryllium allowed into China,” Colette Kress, the company’s main fiscal officer, said.

“Our competitors successful China, bolstered by caller IPOs, are making progress,” she continued, successful an evident notation to Moore Threads’ IPO successful December, “and person the imaginable to disrupt the operation of the planetary AI manufacture implicit the agelong term.”

During the capitalist call, Huang besides addressed the company’s pending concern successful OpenAI, which has been reported astatine $30 billion.

“We proceed to enactment with OpenAI toward a concern agreement. We judge we are close,” Huang said. He besides referenced partnerships with Anthropic, Meta, and Elon Musk’s xAI. However, statements Nvidia filed with the U.S. Securities and Exchange Commission connected Wednesday emphasized that determination was “no assurance” an concern would instrumentality place.

Huang besides addressed concerns astir the sustainability of tech companies’ capex commitments, saying helium believed the compute investments would soon bring revenue.

“In this caller satellite of AI, compute is revenue. Without compute, there’s nary mode to make tokens. Without tokens, there’s nary mode to turn revenues,” Huang said. “We’ve reached the inflection constituent and we’re generating profitable tokens that are productive for customers and profitable for the unreality work providers”