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NVIDIA Logs Record Q2 Fiscal 2024 Revenue Growth; Jensen Huang on Accelerated Computing, Generative AI

NVIDIA (Nasdaq: NVDA) posted a record revenue of $13.51 billion during the second quarter of its 2024 fiscal year, reflecting a 101 percent hike from the prior-year period and an 88 percent increase from the previous quarter.

The Santal Clara, California-based company said Wednesday it returned $3.38 billion to shareholders in the form of cash dividends and share repurchases and saw its GAAP diluted earnings per share jump 854 percent to $2.48 in Q2 FY 2024, up from 0.26 a year ago.

During the quarter, major cloud service providers announced massive NVIDIA H100 AI infrastructures. Leading enterprise IT system and software providers announced partnerships to bring NVIDIA AI to every industry. The race is on to adopt generative AI,” Jensen Huang, founder, president and CEO of NVIDIA, said in a statement.

At the quarterly earnings call Wednesday, Huang discussed the shift of about $1 trillion worth of global data centers from general-purpose computing to accelerated computing and generative artificial intelligence.

“The demand – easiest way to think about the demand, the world is transitioning from general-purpose computing to accelerated computing. That’s the easiest way to think about the demand,” the chief executive told analysts.

“The best way for companies to increase their throughput, improve their energy efficiency, improve their cost efficiency is to divert their capital budget to accelerated computing and generative AI. Because by doing that, you’re going to offload so much workload off of the CPUs, but the available CPUs is — in your data center will get boosted,” he added.

NVIDIA’s data center business reported a record revenue of $10.32 billion in Q2 FY 2024, up 171 percent from the same period a year ago and up 141 percent from the first quarter.

The company’s professional visualization segment logged $379 million in second-quarter sales, showing a 28 percent increase from Q1 and a 24 percent drop from the prior-year period.

Shareholders of record as of Sept. 7 will get a quarterly cash dividend of $0.04 per share on Sept. 28.

NVIDIA expects to generate $16 billion in revenue during the third quarter of fiscal 2024 with a non-GAAP gross margin of 72.5 percent.

Shares at the graphics chipmaker gained 3.2 percent on Wednesday’s regular trading session and closed at $471.16.

On Sept. 12, GovCon Wire’s sister site ExecutiveBiz will host the Trusted AI and Autonomy Forum in person in Fall Church, Virginia. Register to join the event.

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