NVIDIA outlined an AI cloud-services push on 22 February as it reported quarterly revenue of US$6.05 billion, down 21% year-on-year. The quarter ended 29 January, closing its fiscal 2023.
Photo: © 2020 Will Buckner, NVIDIA headquarters sign, 31 October 2020, CC BY 2.0. Cropped for display; original retained.
Full-year revenue was almost unchanged at US$26.97 billion. NVIDIA’s CFO commentary shows the split: annual Data Center revenue rose 41% to US$15.01 billion, while Gaming fell 27% to US$9.07 billion.
Data Center’s latest quarter was less buoyant: revenue rose 11% year-on-year to US$3.62 billion but fell 6% sequentially. NVIDIA cited reduced China sales alongside growth from US cloud providers. Gaming brought in US$1.83 billion, down 46% year-on-year but up 16% sequentially.
The company attributed Gaming’s annual decline to lower shipments into its distribution channel as it reduced inventory. It credited the sequential improvement to new Ada-based GeForce GPUs, whose expanded lineup it announced in January.
A broader AI business
Chief executive Jensen Huang said interest in generative AI was accelerating. NVIDIA plans to offer computing infrastructure, enterprise AI software and customizable models as cloud services. It said DGX Cloud was already offered through Oracle, with Microsoft Azure and Google Cloud expected to follow; further details are due at March’s GTC conference.
The plan also involves spending: NVIDIA disclosed US$2.23 billion in multi-year cloud-service commitments, intended to support its own AI services and research. These are purchase obligations, not customer revenue.
For fiscal 2024’s first quarter, NVIDIA forecasts revenue of US$6.50 billion, plus or minus 2%. That’s a company outlook, not a reported result.
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