Although ATI (before AMD) began earlier in the graphics card business, NVIDIA quickly overtook it and positioned itself above ATI in sales. For decades, NVIDIA has been more popular, and despite its latest GPUs being much more expensive, this has not prevented the company from increasing its profits. In fact, NVIDIA announces its Q3 2023 results, showing a massive increase in revenue and reporting that it earns five times more from AI compared to GPU sales for gaming. These impressive results come despite recent sanctions in China regarding NVIDIA’s AI and GPU chips.
NVIDIA has experienced a few moments in its history where its stock prices and revenues have skyrocketed. Before 2015, its stock price remained relatively stable, growing very slowly from 1 to 5 dollars between 1999 and 2015. However, after 2015, NVIDIA’s growth was incomparable.
NVIDIA achieves impressive revenues during Q3 2023
In 2016, stocks were worth more than $15, and NVIDIA began to grow significantly following the launch of the GTX 10 series. By 2017, stocks reached $50, and by 2020, with the release of the RTX 30 series, they hit $130. The pandemic and the popularity of cryptocurrency mining helped NVIDIA’s GPU sales soar, boosting the company’s stock price to $315 in November 2021. With the rise of AI, the company’s growth is even greater, with stock prices now nearing $500.
NVIDIA has now released its Q3 2023 revenue report, which ended on October 29, 2023. The company announced a total of $18.120 billion, representing a 206% increase from a year ago and a 34% increase from the previous quarter. GAAP earnings per diluted share were $3.71, 12 times more than last year, and 50% more than the previous quarter. Non-GAAP benefits amounted to $4.02, a 6x year-over-year growth, and a 49% quarter-over-quarter increase. The company’s GAAP net earnings went from $680 million in Q3 of the previous year to $9.243 billion during the same period this year, a 13.6x increase.
Data center and AI sector increases revenues by 279% in a year
NVIDIA announced that it would pay its next quarterly cash dividend of $0.04 per share on December 28, 2023, to all registered shareholders on December 6. In the Q3 results, NVIDIA achieved a record-breaking revenue figure of $14.510 billion in the data center and AI sector, representing a 279% year-over-year increase and a 41% quarter-over-quarter growth. NVIDIA announced the HGX H200, the first GPU with HBM3e memory, to be available for servers and data centers in Q2 2024. The company also revealed the GH200 Grace Hopper superchips, which will power more than 40 supercomputers.
In the gaming segment, revenues reached $2.860 billion, an 81% year-over-year increase and a 15% quarter-over-quarter growth. As can be seen, the difference in earnings between data centers and gaming is significant, though both boast impressive figures. NVIDIA highlights the presence of more than 1,700 games on GeForce NOW, including Baldur’s Gate 3, Forza Motorsport, and Alan Wake 2. The company also notes that there are currently 475 games and applications compatible with RTX.
Following this, the professional visualization sector achieved $416 million, a 108% increase from last year. The automotive sector saw a smaller increase, with a 4% growth from the previous year, reaching $261 million. Finally, the OEM sector remained unchanged, with $73 million in revenue.
The news of NVIDIA breaking its revenue record despite not being able to sell to China, with a 206% year-over-year increase, a 279% increase in AI, and revenues five times higher than gaming, was first reported by El Chapuzas Informático.
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