Highlights
- Nvidia's annual profit rose by 769%, with shares up 16%. It's now valued at $2 trillion, trailing only Microsoft and Apple.
- AI advancements have fueled much of Nvidia's growth. Data center revenue is up 409%, surpassing gaming as the main source of income.
- Gaming revenue now accounts for only 12% of total earnings, with PC gaming enthusiasts concerned that the graphics card business may suffer.
Nvidia is reporting a staggering 769% annual profit gain, which has led to its shares rising by more than 16% in the last day. The company's rapid growth has been nothing short of extraordinary. For context, Nvidia started 2023 valued at $350 billion. Now, it's worth just south of $2 trillion. Nvidia recently passed Amazon, and now trails only Microsoft and Apple as the third most valuable publicly traded company. Not to mention, Nvidia's success has caused the company's CEO Jensen Huang to skyrocket up the list of the world's richest people.
While gamers mostly know Nvidia due to the company producing some of the best graphics cards on the market, much of the tech giant's recent growth has been due to AI. AI has long been a buzzword in tech circles, but Nvidia's strides in that area are one of the main reasons why everyone is now talking about the corporation based out of Santa Clara, California.
Nvidia RTX 4080 SUPER Has Already Sold Out
Nvidia's new RTX 4080 SUPER graphics card, a high-end option at a more reasonable price, quickly sells out following its recent launch.
The data center portion of Nvidia's business, which houses many of its AI endeavors, has seen a revenue growth of 409% from last year's fourth quarter. Data centers, Nvidia's fastest-growing division, now make up by far the largest portion of the business in terms of revenue, with gaming falling further and further behind.
Nvidia's Quarterly Revenue By Markets
What is likely to interest gamers is that Nvidia's gaming revenue now only accounts for 12% of the company's total earnings. For context, gaming accounted for more than a quarter of the company's total earnings in the previous year. Still, with gaming taking up less and less of the company's revenue share, PC gaming enthusiasts may worry that the graphics card portion of the business may take a back seat. Nvidia recently released the RTX 4080 Super, but that's perhaps the last revision until the company pushes out the inevitable 50-series GPUs.
While the gaming portion of the business was flat from the previous quarter, revenue was up 56% from the previous year. This portion of the business accounted for $10.4 billion alone. In fact, Nvidia has often struggled to meet demand. As a result of demand, as well as a myriad of other factors, Nvidia GeForce RTX 4090 prices are finally coming down after months of selling well over $2,000.
Nvidia has also partnered with other companies in the gaming space like Nintendo. Rumors suggest Nvidia will power the Switch successor as well. While Nintendo has yet to confirm any details concerning its next piece of gaming hardware, fans are hopeful the system will take advantage of Nvidia's DLSS technology, which has been proven to boost frame rates significantly for PC gamers.
NVIDIA GeForce RTX 4090 Founders Edition
NVIDIA's top-of-the-line GPU, the GeForce RTX 4090 Founders Edition, contains 16,384 CUDA Cores. It can support up to 8K gaming and allows for actual, smooth ray-tracing gameplay. The Founders Edition card is also an excellent GPU variant in terms of cooling, VRMs, and value.
