Executive Summary
In Q3 2024, NVIDIA Corporation achieved record revenue of $18.1 billion, reflecting an exceptional 34% increase sequentially and a staggering 205% year-on-year growth. This remarkable performance was largely driven by the Data Center segment, which generated $14.5 billion in revenue—up 41% from the previous quarter and 279% year-on-year. The ongoing adoption of generative AI applications and strong demand from consumer internet companies and enterprises significantly fueled growth. Management noted that NVIDIA is well-positioned to capitalize on accelerating AI infrastructure investments both domestically and globally. Notably, gross margins expanded to 74% supported by high-performing products and efficiencies in operations.
Key Performance Indicators
QoQ: 34.15% | YoY:205.51%
QoQ: 41.62% | YoY:321.78%
QoQ: 53.19% | YoY:1 633.28%
QoQ: 49.37% | YoY:1 259.26%
QoQ: 52.00% | YoY:1 307.41%
Key Insights
1. **Revenue and Growth**: $18.1 billion revenue (YoY: +205.51%, QoQ: +34.15%).
2. **Gross Profit**: $13.4 billion (YoY: +321.78%, QoQ: +41.62%).
3. **Operating Income**: $10.4 billion (YoY: +1,633.28%, QoQ: +53.19%).
4. **Net Income**: $9.24 billion (YoY: +1,259.26%, QoQ: +49.37%).
5. **Earnings Per Share (EPS)**: $0.38 (YoY: +1,307.41%, QoQ: +52.00%).
**Operating Margin**: 57.5%, reflecting continued operational efficiency and demand increases.
6. **Cash Flow Metrics**: Free Cash Flow was r...
Financial Highlights
1. Revenue and Growth: $18.1 billion revenue (YoY: +205.51%, QoQ: +34.15%).
2. Gross Profit: $13.4 billion (YoY: +321.78%, QoQ: +41.62%).
3. Operating Income: $10.4 billion (YoY: +1,633.28%, QoQ: +53.19%).
4. Net Income: $9.24 billion (YoY: +1,259.26%, QoQ: +49.37%).
5. Earnings Per Share (EPS): $0.38 (YoY: +1,307.41%, QoQ: +52.00%).
Operating Margin: 57.5%, reflecting continued operational efficiency and demand increases.
6. Cash Flow Metrics: Free Cash Flow was reported at $7.05 billion, indicating robust cash generation from operations.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
18.12B |
205.51% |
34.15% |
| Gross Profit |
13.40B |
321.78% |
41.62% |
| Operating Income |
10.42B |
1 633.28% |
53.19% |
| Net Income |
9.24B |
1 259.26% |
49.37% |
| EPS |
0.38 |
1 307.41% |
52.00% |
Key Financial Ratios
operatingProfitMargin
57.5%
operatingCashFlowPerShare
$0.3
freeCashFlowPerShare
$0.29
dividendPayoutRatio
1.05%
Management Commentary
- Data Center Performance: "Data Center compute revenue quadrupled from last year" - Jensen Huang. NVIDIA established itself as a leader in providing AI supercomputer infrastructures, such as the NVIDIA HGX platform, which drove significant growth in Data Center revenue.
- Generative AI Adoption: "The generative AI era is in full steam and has created the need for a new type of data center, an AI factory" - Jensen Huang. Management highlighted the role of generative AI in expanding their addressable market.
- Export Regulations: Colette Kress addressed new U.S. export regulations impacting sales in China and highlighted strategies to comply and pivot to meet global demand.
"Our Data Center compute revenue quadrupled from last year and networking revenue nearly tripled" - Colette Kress
— Colette Kress
"Generative AI is the largest TAM expansion of software and hardware that we've seen in several decades" - Jensen Huang
— Jensen Huang
Forward Guidance
For Q4 2024, NVIDIA forecasts revenue of approximately $20 billion, reflecting a strong pipeline, primarily driven by Data Center growth. Management anticipates that the demand for AI and accelerated computing offerings will offset potential declines in gaming revenue as the segment aligns with seasonal trends. Expectations for gross margins are set at 74.5% alongside a proactive stance towards maintaining operational integrity amid regulatory changes in key markets.