- Nvidia’s Q4 earnings smashed Wall Street’s high expectations.
- In a call with analysts, CEO Jensen Huang unpacked Nvidia’s chips and software business.
- Here are three fascinating things we learned.
When Nvidia reported its earnings on Wednesday, it managed to exceed even Wall Street’s high expectations.
The AI chipmaker had better-than-expected revenues of $22.1 billion in the fourth quarter, a 265% year-on-year increase. The company’s stock surged almost 15% in premarket trading after posting the blockbuster quarterly sales.
But some of the more interesting details came during a conference call with analysts held by CEO Jensen Huang following the earnings.
Huang delved into some of the specifics of the company’s current and future projects during the call. Here’s what we learned.
Nvidia’s Hopper GPU weighs 70 pounds
Nvidia’s chips are seriously complex.
Part of the supply chain issues the company has been facing are down to the complexity of the products, which Huang underscored during the call.
“The Nvidia Hopper GPU is 35,000 parts. It weighs 70 pounds,” Huang said during the call.
“These things are really complicated things we’ve built. People call it an AI supercomputer for good reason,” he added.
Nvidia is teaching tech execs to share
Nvidia’s chips are pretty much the hottest commodity in tech right now.
Tech companies have been scrambling to acquire as many as possible amid limited supply. Meta CEO Mark Zuckerberg is reportedly sitting on an enviable mountain of the chips. Huang is aware of the steep competition and is apparently interested in mediating between competing companies.
“We do the best we can to allocate fairly and to avoid allocating unnecessarily,” Huang said during the call.
“At the core of it, we want to allocate fairly, avoiding waste and looking for opportunities to connect partners and end users,” he added.
Nvidia’s software business ‘is just getting started’
Nvidia’s software business could be the company’s next big bet.
During the call, the CEO was asked to unpack the software segment of the company — which has already reached the $1 billion annual revenue mark.
“The way we go to market with it is that think of that Nvidia AI Enterprise now as a run time like an operating system, it’s an operating system for artificial intelligence,” he said.
Huang added that he thought “every enterprise in the world” would eventually run on Nvidia AI Enterprise.
“This is going to likely be a very significant business over time. We’re off to a great start,” he said.
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