NVIDIA's Q2 2024 quarterly revenue reached a record 30 billion dollars, driven by surging AI GPU demand.

Driven by unprecedented demand for AI GPUs, Nvidia posted an all-time-record quarterly revenue of $30.040 billion in its second quarter of fiscal 2025, representing growth of 122% year-over-year and 15% quarter-over-quarter. The company's net income for the quarter reached $18.642 billion, up 10% sequentially and 174% compared to the same quarter a year ago. However, gross margin for the quarter was 75.1%, down 3.3% from Q1 FY2025 as the company produced a low-yield Blackwell design in preparations for volume launch. According to CEO Jensen Huang, "Hopper demand remains strong, and the anticipation for Blackwell is incredible. Nvidia achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI."

The data center business accounts for 87.4% of Nvidia's revenue, with the company selling $26.272 billion worth of data center hardware in the quarter, up 16% sequentially and 154% year-over-year. This included compute hardware (primarily GPUs) worth $22.604 billion, while networking revenue reached $3.7 billion, a 114% increase compared to the previous year, fueled by InfiniBand and AI-related Ethernet revenue, including the Spectrum-X end-to-end Ethernet platform. On a sequential basis, networking revenue grew by 16%. The company increased sales of its AI and HPC GPUs by 162% compared to the same quarter a year ago, even as its sales to Chinese entities are now seriously curbed. During the quarter, Nvidia began shipping its H200 GPU with 141 GB of HBM3E memory in volume, though yield issues plaguing the first version of Nvidia's Blackwell-based B100/B200 GPU suggest that Hopper products will likely remain the company's working horses for the remainder of the fiscal year.

Gaming revenue catapulted to $2.88 billion, an increase of 9% sequentially and 16% year-over-year, a seasonal anomaly as gaming graphics card sales are typically down in the second quarter but benefited from back-to-school purchasing in July. Professional Visualization revenue increased to $454 million, up 20% year-over-year and 6% sequentially, primarily driven by growth in RTX GPU workstations built on the Ada Lovelace architecture. Nvidia's automotive revenue totaled $346 million, up 5% sequentially and 37% year-over-year, thanks to sales of self-driving platforms and AI cockpit solutions, while sales to OEMs reached $88 million, up 13% quarter-over-quarter and 33% year-over-year.

For the third quarter, Nvidia expects sales of around $32.5 billion ±2%, with GAAP and non-GAAP gross margins expected to be 74.4% and 75.0%, respectively. While the company's margins remain the highest in the industry, the modest revenue growth prediction has concerned Wall Street analysts. However, given that demand for Nvidia's Hopper and Blackwell products exceeds supply, the humble guidance may reflect constraints on TSMC's ability to supply Nvidia with sufficient processors.