Thematic Spotlight: Nvidia Delivers as AI Drives Record Results

Nvidia’s latest earnings highlight its growing importance in AI and computing. The company reported $35 billion in quarterly revenue, a 94% year-on-year increase, driven by strong demand for AI applications and infrastructure. With generative AI and data centre products at the core, Nvidia continues to solidify its leadership in a rapidly evolving market.1

Blackwell Platform: Setting the Stage for Growth

The launch of Nvidia’s Blackwell platform marks a critical milestone. Demand is already exceeding supply, with sales expected to ramp up further through 2025. While near-term production costs are likely to pressure margins, management expects recovery by the second half of CY2025. Blackwell is positioned to meet the increasing needs of AI workloads, further strengthening Nvidia’s competitive edge.2

Generative AI and Data Centre Momentum

Generative AI remains Nvidia’s largest growth driver, with data centre sales making up 88% of total revenue. Products like the Hopper platform have fuelled significant adoption across cloud providers, enterprises, and sovereign sectors. This diversified demand reflects the broad appeal of Nvidia’s AI solutions, which continue to attract investment across industries.3

Expanding Beyond Data Centre

The Gaming segment delivered a 15% year-on-year increase, driven by strong demand for RTX GPUs and the emerging AI PC market. Nvidia’s focus on AI-enabled gaming hardware and consumer applications demonstrates its ability to expand into new markets. Meanwhile, its push into industrial AI and robotics opens additional opportunities in sectors like manufacturing and logistics.4

In Summary

Nvidia’s performance underscores its pivotal role in the AI ecosystem. The success of the Blackwell platform, ongoing generative AI demand, and diversification into new markets signal sustained growth potential. As AI adoption accelerates, Nvidia is well-positioned to capitalise on this trend and drive innovation across industries.

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Forecasts are not guaranteed and undue reliance should not be placed on them. This information is based on views held by Global X as at 26/11/2024. Investing involves risk, including the possible loss of principal. Diversification does not ensure a profit nor guarantee against a loss.

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This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information is not intended to be individual or personalised investment or tax advice and should not be used for trading purposes. Please consult a financial advisor or tax professional for more information regarding your investment and/or tax situation.