Key Announcement
NVIDIA has announced that its third-quarter fiscal year 2024 revenue has surpassed the $10 billion mark for the first time, reaching exactly $10 billion. The results were released on August 28, 2024, covering the period ended July 28, 2024.
Key facts:
- Filing date: August 28, 2024
- Reporting period: Third quarter of fiscal year 2024 (ended July 28, 2024)
- Revenue this quarter: $10 billion (first time exceeding $10 billion)
- Year-over-year growth: 12% compared to $8.9 billion in Q3 FY2023
- Quarter-over-quarter growth: ~18% versus $8.5 billion in Q2 FY2024
Financial Performance Breakdown
The $10 billion revenue is composed of: Data Center ($5.4 billion, 54%), Gaming ($2.4 billion, 24%), Professional Visualization ($870 million), Automotive ($450 million), and Broadcast & Professional ($240 million).
A notable reversal: Data Center revenue became the largest business segment for the first time, surpassing Gaming, which had been the top contributor for years. This shift underscores NVIDIA’s strategic pivot from a gaming-focused graphics company to an AI infrastructure provider.
Data Center revenue surged 222% year-over-year and grew 52% sequentially. The segment has demonstrated exponential growth over the past four quarters, driven by surging demand for AI training and inference workloads.
Gross margin reached 74.3% and operating margin stood at 51.2%, reflecting strong pricing power and product mix optimization.
Industry Implications and Business Comparison
Margins have improved significantly compared to prior periods, with gross margin rising from 62.5% year-over-year. This reflects higher proportion of AI chips, which command premium pricing.
| Business Segment | Revenue ($B) | Share | YoY Change |
|---|---|---|---|
| Data Center | 5.4 | 54% | +222% |
| Gaming | 2.4 | 24% | +12% |
| Professional Visualization | 0.87 | 8.7% | — |
| Automotive | 0.45 | 4.5% | -21% |
| Broadcast & Professional | 0.24 | 2.4% | -12% |
| Other | 0.62 | 6.2% | — |
| Total | 10.0 | 100% | +12% |
Note: YoY growth for Professional Visualization and Other segments was not disclosed.
Practical Guidance for Readers
For AI researchers and developers: NVIDIA’s H100 and B100 GPUs remain in short supply. Consider cloud-based access via AWS, Azure, or GCP, or wait for B200 shipments ramping in second half 2024.
For gaming enthusiasts: Entry-level GeForce cards are stable in price, but high-end models face supply constraints due to AI demand. Buying older-generation RTX 40 series inventory may offer better value in September.
Final Thoughts
Crossing the $10 billion quarterly revenue threshold establishes NVIDIA as a dominant force in semiconductors. The company’s AI chip ecosystem is deepening its moat, and the industry must recalibrate its understanding of how computing power is valued and allocated in the AI era.