NVIDIA Corporation (NVDA) Q3 2024 Earnings Call Nov. 21, 2023

Here is a summary of NVIDIA's Q3 Earnings Call.

Colette Kress - EVP & CFO

Overall Financial Performance

• Record Revenue:
  $18.1 billion, a 34% sequential increase and over 200% year-on-year growth.

• Expectations Surpass:
  Revenue exceeded the $16 billion forecast.

Data Center Segment

• Revenue:
  Record $14.5 billion, 41% increase sequentially and 279% year-on-year.

• Key Drivers:
  NVIDIA HGX platform, Hopper Tensor Core GPU, InfiniBand networking.

• Major Applications:
  AI supercomputers, generative AI applications (e.g., Adobe Firefly, ChatGPT).

• Customer Growth:
  Consumer internet companies and enterprises, notably Meta, Adobe, Databricks.

• Cloud Providers:
  Strong demand from hyperscale CSPs and specialized GPU CSPs.

• Regulatory Impact:
  U.S. export control regulations affecting sales in China and other markets.

NVIDIA Supercharges Hopper, the World’s Leading AI Computing Platform

Product Developments

• Hopper and Ampere GPUs:
  20-25% of Data Center revenue, now subject to new U.S. export controls.

• Grace Hopper Superchip:
  Launched, targeting supercomputing customers.

• L40S GPU:
  Released for various training and inference workloads.

• H200 GPU:
  Announced, featuring HBM3e for enhanced AI performance.

NVIDIA Introduces Generative AI Foundry Service on Microsoft Azure for Enterprises and Startups Worldwide

SAP, Amdocs, Getty Images Among First to Build Custom LLMs With NVIDIA AI Foundation Models, Train on NVIDIA DGX Cloud, Deploy With NVIDIA AI Enterprise Software

AI and Inference

• Market Demand:
  Growing interest in AI inference across sectors.

• TensorRT-LLM:
  Improved performance and cost efficiency for LLMs on NVIDIA GPUs.

• Partnerships:
  Collaborations with cloud service providers for AI-focused services.

Networking Segment

• Revenue Run Rate:
  Exceeds $10 billion annually.

• InfiniBand Growth:
  Fivefold year-on-year increase.

• Spectrum-X Ethernet:
  Launch planned, enhancing AI communication capabilities.

Software and Services

• Revenue Run Rate:
  Approaching $1 billion annually.

• DGX Cloud Service and NVIDIA AI Enterprise:
  Key growth areas in AI training and inference.

Gaming Segment

• Revenue:
  $2.86 billion, 15% sequential and 80% year-on-year growth.

• Market Position:
  Strong back-to-school season performance, RTX and DLSS technologies driving demand.

• Generative AI:
  Emerging as a significant application for high-performance PCs.

NVIDIA Omniverse - Racer-RTX

Professional Visualization (Pro Vis)

• Revenue: $416 million, 10% sequential and 108% year-on-year growth.

• Focus Areas: AI in healthcare, edge AI, and RTX-powered workstations.

Automotive Segment

• Revenue:
  $261 million, modest growth driven by NVIDIA DRIVE Orin SOC and AI cockpit solutions.

• Partnerships:
  Expanded collaboration with Foxconn for automotive SOC development.

Fiscal Outlook

• Q4 Forecast:
  Estimated total revenue of $20 billion.

• Data Center Growth:
  Expected strong performance, offsetting potential declines in Gaming.

• Operating Expenses:
  Projected increase in GAAP and non-GAAP expenses.

Upcoming Events

• Participation in various technology and health care conferences.

Q&A followed.

Anne Chapman

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