Nvidia revenue nearly doubles on AI chips, but growth slows

Nvidia’s revenues rose significantly again in the third fiscal quarter of this year due to the sale of AI chips. Compared to the same period a year earlier, this is a growth of 94 percent. The expectation is that the development will be less rapid.

Nvidia’s revenue in the third quarter of this year was 35.1 billion dollars, 17 percent more than in the second quarter and 94 percent more than last year. The profit is 19.3 billion dollars, 109 percent more than in 2023 and 16 percent more than in the second quarter.

The company itself attributes the growth to the popularity of AI. “The age of AI is in full swing, and it’s driving a global shift to Nvidia computing,” says founder and CEO Jensen Huang, explicitly mentioning the Blackwell AI GPU, unveiled in March of this year. According to Huang, it’s now in total production and huge demand. The same goes for the Hopper chip.

However, CNBC notes that growth at Nvidia is slower than it used to be. For the fourth quarter of this year, the company expects growth of 70 percent compared to a year earlier. In the fourth quarter of 2023, growth was still 265 percent. Revenue growth in the past quarter is also slower than in the previous three quarters when it was still 122 percent (second quarter), 262 percent (first quarter), and 265 percent (fourth quarter of 2023).

According to Reuters, the slower growth is due to problems in Nvidia’s supply chain. For example, production partner TSMC has limited capacity for advanced production techniques. Huang did not want to comment directly to Reuters. He did say that as Nvidia scales up Blackwell’s production, “we continue to expand the number of production lines, improve our yield, and improve our cycle time.” “All of that should improve our output.”