Nvidia is growing faster than you think. This table proves it. Jeremy Bowman, Motley Fool November 30, 2024 (Saturday) at 10:15 PM
Like clockwork, Nvidia (NASDAQ: NVDA) achieved explosive growth again in its third-quarter earnings report, but it seems investors may have overlooked the most impressive part of the performance. The company did not mention it during the earnings call or press release, instead delegating it to the "CFO Commentary" section of the earnings report.
Today, most investors know that the datacenter segment is driving Nvidia's growth. Nvidia's business spans from gaming to self-driving cars, visualization tools like Omniverse, but the success in the datacenter business, propelled by the explosive growth of AI, has been stealing the show and now accounts for a majority of Nvidia's revenue.
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Overall revenue for the third quarter of the fiscal year 2025 was $35.1 billion, a 94% increase compared to the same period last year, with the datacenter segment's growth even stronger at $30.8 billion, a 112% increase from the same period last year.
However, Nvidia classifies datacenter revenue into two categories, bringing revenue from "Networking" and "Computing." Computing refers to components that run applications on servers such as processors and memory chips. Networking includes components like switches and routers, providing the necessary connectivity and security for application execution.
Given that AI training and inference are driven by computing components, it is reasonable that computing accounts for the majority of its revenue. In the third quarter, datacenter networking revenue increased by a modest 20% to $3.1 billion, while datacenter computing revenue increased by 132% to $27.6 billion.
Datacenter computing figures appear to best reflect the growth underlying Nvidia's business. The company, as mentioned multiple times in their earnings calls, expects the business to continue facing supply constraints, especially on the Blackwell platform, over the next several quarters.
Datacenter computing revenue also sequentially increased by 22%, surpassing the company-wide sequential growth of 17%, with 17% sequential growth in the data center. The graph below shows the performance of datacenter computing revenue over the past several quarters.
Today, most investors know that the datacenter segment is driving Nvidia's growth. Nvidia's business spans from gaming to self-driving cars, visualization tools like Omniverse, but the success in the datacenter business, propelled by the explosive growth of AI, has been stealing the show and now accounts for a majority of Nvidia's revenue.
Are you missing the morning scoop? The Breakfast News is a quick, silly, and free daily newsletter that provides everything. Sign up for free »
Overall revenue for the third quarter of the fiscal year 2025 was $35.1 billion, a 94% increase compared to the same period last year, with the datacenter segment's growth even stronger at $30.8 billion, a 112% increase from the same period last year.
However, Nvidia classifies datacenter revenue into two categories, bringing revenue from "Networking" and "Computing." Computing refers to components that run applications on servers such as processors and memory chips. Networking includes components like switches and routers, providing the necessary connectivity and security for application execution.
Given that AI training and inference are driven by computing components, it is reasonable that computing accounts for the majority of its revenue. In the third quarter, datacenter networking revenue increased by a modest 20% to $3.1 billion, while datacenter computing revenue increased by 132% to $27.6 billion.
Datacenter computing figures appear to best reflect the growth underlying Nvidia's business. The company, as mentioned multiple times in their earnings calls, expects the business to continue facing supply constraints, especially on the Blackwell platform, over the next several quarters.
Datacenter computing revenue also sequentially increased by 22%, surpassing the company-wide sequential growth of 17%, with 17% sequential growth in the data center. The graph below shows the performance of datacenter computing revenue over the past several quarters.
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