Revenue
- Nvidia reported record revenue of $22.1 billion in Q4, a 22% increase sequentially and a 265% increase year-over-year.
- Data center revenue for the fiscal year 2024 was $47.5 billion, more than tripling from the previous year.
- Growth in data center revenue was strong across all regions except China, where revenue declined due to US government export control regulations.
- Software and services offerings reached an annualized revenue run rate of $1 billion in Q4.
- Gaming revenue was flat sequentially but up 56% year-over-year, driven by solid consumer demand for NVIDIA GeForce RTX GPUs.
- Pro visualization revenue increased by 11% sequentially and 105% year-over-year.
- Automotive revenue grew by 8% sequentially and 21% year-over-year, surpassing $1 billion for the first time.
Data Center
- Demand for Hopper architecture products remains strong, driving data center revenue growth in both training and inference of generative AI and large language models.
- Approximately 40% of data center revenue in the past year was for AI inference.
- Large cloud providers represented more than half of Nvidia's data center revenue.
- Consumer internet companies are using AI for deep learning-based recommendation systems.
- Enterprise software companies are applying generative AI to help customers realize productivity gains.
- Adoption of AI by enterprises across various industries is driving demand for Nvidia's AI infrastructure.
- Nvidia's data center revenue contribution from the automotive vertical exceeded $1 billion last year.
- In healthcare, digital biology and generative AI are helping to reinvent drug discovery, surgery, medical imaging, and wearable devices.
- The vast majority of revenue was driven by the Hopper architecture along with Infiniband networking.
- Networking exceeded a $13 billion annualized revenue run rate.
- NVIDIA launched Spectrum X, an end-to-end offering for AI-optimized networking in the data center.
Gaming
- Unveiled the GeForce RTX 40 Super Series family of GPUs, starting at $599, offering incredible gaming performance and generative AI capabilities.
- Announced a wave of new RTX 40 series AI laptops from every major OEM.
- Introduced NVIDIA Avatar Cloud Engine microservices.
Pro Visualization
- Pro visualization revenue increased by 11% sequentially and 105% year-over-year, driven by demand for RTX Ada architecture GPUs and the adoption of Omniverse in industries such as manufacturing, automotive, and robotics.
Automotive
- Automotive revenue grew by 8% sequentially and 21% year-over-year, surpassing $1 billion for the first time.
- NVIDIA Drive Orin continues to gain adoption, with its successor, NVIDIA Drive Thor, offering even more AI performance and integrating a wide range of intelligent capabilities.
Financial Outlook
- Total revenue for Q1 is expected to be $24 billion, plus or minus 2%, with sequential growth in Data Center and ProViz partially offset by a seasonal decline in Gaming.
- Gross margins for Q1 are expected to be 76.3% and 77% for GAAP and non-GAAP, respectively, plus or minus 50 basis points, similar to Q4.
- Fiscal year 2025 GAAP and non-GAAP operating expenses are expected to grow in the mid-30% range.
Generative AI
- Generative AI is a new application space that enables a new way of computing and is forming a whole new industry.
- AI supercomputers and AI generation factories are specialized data centers that transform raw data into valuable tokens used in various applications.
- The diversity of generative AI is evident in the growth of inference and the expansion into new industries.
- Sovereign AI refers to the concept of regions building their own AI infrastructures to protect and harness their data.
- The growth of recommender systems is a major driver of the demand for GPUs in inference.
Supply Chain
- NVIDIA's supply chain is improving, but demand is expected to remain stronger than supply throughout the year.
- The next generation of products, such as Blackwell, is expected to be supply constrained.
- NVIDIA's inventory, purchase commitments, and prepaids are managed to ensure efficient supply and capacity reservation.
Software
- NVIDIA's software business has surpassed $1 billion, driven by the increasing demand for accelerated computing and the need for software optimization and management for enterprise software companies.
- NVIDIA introduced NVIDIA AI Enterprise, a runtime platform for artificial intelligence, which is expected to become a significant business over time.
Industry Trends
- The computer industry is undergoing two simultaneous platform shifts: the transition of data centers from general-purpose to accelerated computing, and the rise of generative AI.
- NVIDIA believes
