Listen: Nvidia delivers Q4 FY24 earnings call $NVDA

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