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NVIDIA’s AI Project Contributes Largely to its Record Revenue in Q2 2023

Tech giant NVIDIA reported a record-breaking $13.51 billion revenue in the second quarter of 2023, most of which was generated by the company’s AI projects.


NVIDIA reported a record-breaking $13.51 billion revenue
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NVIDIA, a renowned tech company focusing on crypto and AI announced that it recorded a $13.51 billion revenue in the second quarter of 2023. The amount is a new record for the company and NVIDIA’s AI-based projects generated the majority of the revenue, as the report pointed out.


NVIDIA and AI


NVIDIA exists in the AI market through its data center branch. The branch hosts numerous AI-based projects and generated $10.32 billion in revenue in Q2 2023, which accounts for over 76% of the total revenue.


The company recently announced several chips that have AI applications. It also mentioned AI-related partnerships with other tech companies like Accenture, SoftBank, VMWare, and ServiceNow. Moreover, the announcement stated that NVIDIA’s new Avatar Cloud Engine was created with the intention of creating video game characters and was launched in partnership with MediaTek, which is a company that utilizes AI to automate systems.


Commenting on the acceleration of AI, NVIDIA’s co-founder Jensen Huang stated:


“A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI. … NVIDIA GPUs … make up the computing infrastructure of generative AI.”


Record Revenue


The record-breaking $13.51 billion revenue marks an impressive 141% growth from the previous quarter and a remarkable 171% increase from the same period last year. This substantial growth can largely be attributed to the adoption of NVIDIA GPUs, Mellanox networking, and CUDA AI software stack, which have effectively become the backbone of generative AI computing infrastructures worldwide.


The strategic financial moves made by NVIDIA are just as impressive. The company has displayed its commitment to shareholders by returning $3.38 billion in the form of share repurchases and cash dividends during the second quarter. Furthermore, NVIDIA's board of directors recently approved an additional $25 billion for share repurchases, indicating solid confidence in the company's growth trajectory.


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