NVIDIA reported a 206% revenue spike in the last quarter with the release of its AI graphics chips, easily beating Wall Street's predictions.
Revenue records tallied up $18.1 billion, higher than the expected $16.2 billion revenue, of sales from July to September.
NVIDIA's data center revenues also surged up to $14.5 billion, 279% higher than last year's and 41% up from the previous quarter.
Hopes are up even in the current quarter with Nvidia providing a revenue forecast range of $20 billion at midpoint.
NVIDIA CEO Jensen Huang noted "strong growth" across its GPUs, CPUs, networking, and AI foundry services as demand for generative AI continues to rise.
The last quarter recorded NVIDIA's announcement of the GH200 GPU, its latest line for crypto mining and AI-integrated services.
The semiconductor company currently dominates the market for chips used for AI tools, well-capable for large computations to train to learn machine models and serve entire industries.
Lower Revenues from Export Restrictions
Despite its massive sales in the US, Nvidia predicts its revenue in China and other countries to "decline significantly in the fourth quarter of fiscal 2024."
This was after the US government sanctioned export sales of graphics chips to China and the Middle East early this year.
However, Chief Financial Officer Colette Kress said the company's "shortfall" is sure to be "more than offset" by strong demands from other geographic destinations.
NVIDIA is still working with some clients in the Middle East and China to obtain US government licenses to be allowed to sell the company's products.
Higher Revenues, Lower Stocks
Despite the success at revenues, Nvidia's stocks dropped 0.92% to $499.44 today.
The share drop is attributed to Nvidia's failure to satisfy its investors' higher expectations with the AI boom.
It is noted several shareholders bet heavily on the company's AI chips since the market for it started to grow.
Nvidia is currently making sure to earn back the investors' trust with the current quarter and next fiscal year's earnings.
