Key Takeaways.
CFO on demand for next generation products:
“We expect our next generation products to be supply constrained as demand far exceeds supply.”
Some color on AI revenue:
“We estimate in the past year approximately 40% of data center revenue was for AI inference. (…) in the fourth quarter, large cloud providers represented more than half of our data center revenue”.
On China:
“Although we have not received licenses from the US government to ship restricted products to China, we have started shipping alternatives that don't require a license for the China market. China represented a mid single digit percentage of our data center revenue in Q4, and we expect it to stay in a similar range in the first quarter”.
On new stream of revenues:
“We also made great progress with our software and services offerings, which reached an annualized revenue run rate of $1 billion.“
CEO on revenue growth in 2024, 2025 and beyond:
“Yeah, well, we guide one quarter at a time, but fundamentally, the conditions are excellent for continued growth. Calendar 24 to calendar 25 and beyond. And let me tell you why. We're at the beginning of two industry wide transitions, and both of them are industry wide. The first one is a transition from general to accelerated computing. General purpose computing, as you know, is starting to run out of steam. (…) There's just no reason to update with more CPUs when you can't fundamentally and dramatically enhance its throughput like you used to. And so you have to accelerate everything. This is what Nvidia has been pioneering for some time. And with accelerated computing, you can dramatically improve your energy efficiency, you can dramatically improve your cost in data processing by 20 to one, huge numbers. And of course, the speed, that speed is so incredible that we enabled a second industry wide transition called generative AI. (…) We believe these two trends will drive a doubling of the world's data center infrastructure installed base in the next five years and will represent an annual market opportunity in the hundreds of billions”.
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