Nvidia has reported record revenue for the second quarter of fiscal 2024, surpassing expectations and demonstrating its position as a leading AI innovation engine for enterprises. The company’s total revenue grew by 229% over the past five quarters to reach a record $13.5 billion in Q2 FY2024. This growth is driven by Nvidia’s ability to rapidly develop products, establish strong alliances, and attract software developers to its platform, which has resulted in increased adoption of AI and large language models.
Nvidia’s data center segment experienced exceptional growth, with revenue increasing by 171% annually and 141% sequentially to reach $10.32 billion in Q2. This segment now represents 76% of the company’s total revenue. The demand for data center products essential to generative AI and the creation of large language models has been a key driver of Nvidia’s record quarter. The company’s gross margin also increased to 71.2%, up from 45.9% a year ago, providing additional funding for ongoing R&D investments.
The explosive growth of Nvidia reflects strong demand from hyperscale cloud service providers and large internet companies looking to build infrastructure for large language models and generative AI. Nvidia’s commitment to rapid product development and investment in next-generation platforms like its Hopper architecture solidifies its position as a leader in AI workload accelerated computing. The company’s focus on innovation and its AI software stack, including the Nvidia AI Enterprise suite, further positions Nvidia to meet the rising demand for enterprise AI solutions.