A significant increase in revenue was reported in Nvidia’s Q3 financials, primarily attributable to the data center AI GPU division. The research firm Omdia has found an estimated volume of Nvidia’s sales during this quarter.
It is stated that during Q3 of 2023, Nvidia sold nearly half a million AI GPUs, the majority of which were Hopper H100 and the Ampere A100. The industry is amazed by the sales volumes, which have led Nvidia to a dominant market position.
It appears that Nvidia can meet its goal of selling millions of GPUs by 2024; its quarterly results are evidence of its commitment to this goal.
Why it matters: The profitability of AI could be harmful to gamers in the long term as Nvidia shifts its focus elsewhere.
Research firm Omdia tells us which company acquired the most GPUs during the period. Among other companies, Meta and Microsoft took the lead, buying around 150K units of AI GPUs.
Nvidia has also benefited from the Chinese market, which helped it rise even further. The chart shows that around 30% of the products were sold in China. However, the upcoming US policies will hinder the business in this market.
Exports of the GeForce RTX 4090 to China will soon be banned. Therefore, it is predicted that Nvidia might drop in revenue, creating a gap for new competitors. Still, the company made $18.1 billion in revenue this quarter, so a small drop should not be too harmful.
It appears Nvidia is well-positioned to take advantage of the expanding markets, as the server industry is predicted to generate approximately $200 billion in revenue by 2027.
The company has already revealed its plans to enhance its artificial intelligence offerings by adopting next-generation semiconductor and memory standards and making significant improvements to software resources.
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