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Nvidia CEO Jensen Huang acknowledged that the company's supply is struggling to meet the overwhelming demand for its products, in a recent
interview Yahoo Finance, "Demand is just so strong across the world that we remain entirely supply constrained," Huang stated.
The admission from Nvidia's chief executive comes as the company reported blockbuster financial results for its fiscal 2024 first quarter. Revenue soared 88% year-over-year to $7.19 billion, shattering Wall Street's projections. Net income more than doubled to $2.04 billion.
"The age of AI is upon us, and the exponential growth trajectories for AI training and inference are unstoppable," Huang proclaimed during the earnings call. "Nvidia has the right products and the best AI platform to help customers fully capitalize on this era."
Huang specifically cited data center revenue as the primary growth driver, skyrocketing 142% from the prior year to $4.28 billion. The burgeoning AI sector's voracious demand for Nvidia's high-performance GPUs and data center chips fueled the surge.
"The world is embracing NVIDIA AI computing for every industry, every cloud, every robot and every intelligent edge device," Huang remarked."We had great breadth across our portfolio with the ramp of our new computing clusters, from Grace Hopper to the viral AI models like ChatGPT."
Gaming revenue, Nvidia's traditional core business, increased a more modest 13% to $2.24 billion. However, Huang noted gaming product supply remains "severely constrained" as consumer demand outstrips available inventory.
Nvidia's total quarterly revenue eclipsed last year's Q1 results of $3.84 billion by a staggering 87%. Net income doubled from $1.03 billion in the year-ago period.Despite the supply challenges,Nvidia's full-year guidance reflects continued optimism for fiscal 2024.The company projects revenue of approximately approximately $33 billion, marking a 35% jump versus fiscal 2023.
Wall Street clearly shares Nvidia's bullish outlook, with the stock soaring over 26% following the earnings report to an all-time high near $400 per share. The company now boasts a mammoth market cap exceeding $900 billion.
Nvidia's CEO made it abundantly clear: the company aims to power the revolution, constrained supply notwithstanding. "The AI boom, which has been decades in the making, has finally arrived," Huang proclaimed.
