News Nvidia posts $26 billion Q1 revenue amid record AI GPU demand surge

[Admin]

Nvidia reports its best quarter ever as demand for Hopper processors set records.

Nvidia posts $26 billion Q1 revenue amid record AI GPU demand surge : Read more

 

[AlskiOnTheWeb]

With so much of the revenue coming from data center and so little from gaming ... you'd think they would focus more on the data center side honestly. It's got to be a lot more lucrative in the long run.

 

[renz496]

With so much of the revenue coming from data center and so little from gaming ... you'd think they would focus more on the data center side honestly. It's got to be a lot more lucrative in the long run.

nvidia still need their "gaming segment" to dominate the professional space. the entrance to nvidia CUDA ecosystem end up being cheap thanks to their gaming card. and right now nvidia can charge what gamer assume as absurd overprice with their gaming card thanks to semi pro that willing to buy nvidia GPU at higher price. and their numbers start eclipsing actual gamer that buy those GPU for gaming only.

 

[Notton]

With so much of the revenue coming from data center and so little from gaming ... you'd think they would focus more on the data center side honestly. It's got to be a lot more lucrative in the long run.

But they are doing just that?
5080 and 5090 are using GB203
This is a huge departure from before, where Ada Lovelace, Ampere, and Turing used 102, 103, etc.
GB100 is entirely reserved for AI.

If you look at historic Nvidia earnings, you'll notice that data center is growing exponentially.
It's kind of hard to judge its mid and long term performance. Is it going to burst, deflate, maintain, or grow even more? Not a good thing to throw all your eggs into.

Nvidia is not strapped for cash, and AMD and Intel are struggling with GPUs. It doesn't make sense to part with a market that they've already captured around 70~80% of.

The only area that is insufficient is TSMC capacity, but they aren't using the latest and greatest for gaming GPUs. Instead, they are using that for data centers.
They can also switch gaming GPUs back to Samsung, like they did with RTX 3000 series.

 

[edzieba]

nvidia still need their "gaming segment" to dominate the professional space. the entrance to nvidia CUDA ecosystem end up being cheap thanks to their gaming card. and right now nvidia can charge what gamer assume as absurd overprice with their gaming card thanks to semi pro that willing to buy nvidia GPU at higher price. and their numbers start eclipsing actual gamer that buy those GPU for gaming only.

If that were the case, we would be expecting gaming revenue to be trending up along with DC revenue. Instead, it's up a little but mostly flat compared to the rocketship of DC revenue, and without the inflection in Q1-Q2 2024 that DC saw, indicating the two are not coupled by the same demand.

 

[JarredWaltonGPU]

With so much of the revenue coming from data center and so little from gaming ... you'd think they would focus more on the data center side honestly. It's got to be a lot more lucrative in the long run.

This is why Nvidia has announced Blackwell B100/B200 and Grace Blackwell GB200 already. Those will take time to ramp up production, but Nvidia now knows it can sell basically as many as TSMC can produce. They're still on TSMC 4nm, though (4NP this time, not vanilla 4N). Consumer and professional Blackwell GPUs will probably use 4NP as well, but since that's not the most advanced node at TSMC, pricing and capacity should be decent.

Just wait until next year when Nvidia announces the 3N or 2N successor to B200. LOL

 

[TerryLaze]

What black magic is that?! They increased their revenue by 260% their margins went up a little bit, but their income increased by 600% +
How?!
Is that just weird calculation that tax people use?!

 

[renz496]

If that were the case, we would be expecting gaming revenue to be trending up along with DC revenue. Instead, it's up a little but mostly flat compared to the rocketship of DC revenue, and without the inflection in Q1-Q2 2024 that DC saw, indicating the two are not coupled by the same demand.

production limit. most of nvidia 5nm capacity are being channeled towards professional card. nvidia knows gamer in general are buying less. there is no need to excessively increase production. semi pro are growing but nvidia will be appreciate more if those that buying multiple 4090 to get true pro cards like A5000/A6000 instead. but gaming revenue at 2.6 billion is already more than what nvidia can ask for. it could be worse like what happen during turing generation.

 

[edzieba]

production limit. most of nvidia 5nm capacity are being channeled towards professional card. nvidia knows gamer in general are buying less. there is no need to excessively increase production. semi pro are growing but nvidia will be appreciate more if those that buying multiple 4090 to get true pro cards like A5000/A6000 instead. but gaming revenue at 2.6 billion is already more than what nvidia can ask for. it could be worse like what happen during turing generation.

If there was a 'production limit', and if the original claim that the majority of gaming cards were being purchased for 'semi pro' use was true, then we would expect to see the margins for the gaming card sector spike even for flat revenue, as prosumer use leans towards the highest end (and highest margin) SKUs closest to the professional card capabilities, whereas gaming sales trend towards the midrange higher-volume-lower-margin cards. We do not see this.

In addition, the main production limit for Nvidia was not die fabrication or PCBA production, but specifically the CoWoS packaging step for SKUs with HBM. As none of the consumer cards utilise HBM, this bottleneck would not be in effect.

 

[renz496]

If there was a 'production limit', and if the original claim that the majority of gaming cards were being purchased for 'semi pro' use was true, then we would expect to see the margins for the gaming card sector spike even for flat revenue, as prosumer use leans towards the highest end (and highest margin) SKUs closest to the professional card capabilities, whereas gaming sales trend towards the midrange higher-volume-lower-margin cards. We do not see this.

In addition, the main production limit for Nvidia was not die fabrication or PCBA production, but specifically the CoWoS packaging step for SKUs with HBM. As none of the consumer cards utilise HBM, this bottleneck would not be in effect.

sorry when i said "production limit" i was meant to say nvidia limiting 40 series production. there are already reports about partner receiving reduced amount of supply of 40 series GPU. as for semi pro the interest not necessarily on the highest end only. some partner (i think it was PNY) build 4070 with blower cooler. in their marketing material they mention such cooler is the best option when the GPU is use in tandem inside the system. there is no gamer use multi GPU ever since nvidia completely ditch SLI support. and recently Galax releasing single slot 4060Ti specifically for 16GB model only. spec and performance wise those 4060Ti 16GB is similar to nvidia A4000 Ada. unless you need more specific support from nvidia that comes with true pro card getting GTX4060Ti at $500+ is still cheaper than A4000 that starts at $1200. in some place the A4000 Ada end up costing as high as $2000 due to demand.