Memory component shortages remain the only constraint on Nvidia revenue
US technology giant Nvidia has raised its sales forecast for artificial intelligence chips for next year, expecting a 70% revenue increase. In the quarter ending July, the company revenue reached $96.2 billion, beating Wall Street expectations. This was reported by Delo.ua citing Financial Times, according to the portal PromPolitInform.
For the current quarter, the chipmaker projects revenue of around $108 billion. Net profit rose to $59.7 billion, driven by investment income and financial returns from its stake in SpaceX following its public listing.
Chief Financial Officer Colette Kress noted that customer demand would double, but revenue growth would be constrained by supply bottlenecks. An agreement with Amazon Web Services to deploy an additional 2 million new graphics processors provided a further 4% boost to the stock.
Response to Circular Financing Criticism and Client Deals
Company leadership rejected criticism from analysts regarding financial support provided to clients as a form of artificial market demand. Observers note that the company backed a $500 billion guarantee for an investor consortium funding chip purchases and provided over $100 billion in guarantee support for an OpenAI data center in Ohio.
Furthermore, the manufacturer expanded its financial participation in AI developers OpenAI and Anthropic, whose orders will account for about a quarter of company sales next year. “The industry is experiencing a golden age of new AI startups,” said Chief Executive Officer Jensen Huang, adding that cloud providers Google and Amazon have already committed over $1 trillion to infrastructure.
Memory Shortages and China Market Restrictions
Due to global shortages of memory microchips, the company gross margin of 75% last quarter may temporarily drop to 71% early next year. Financial commitments to suppliers increased from $119 billion to $279 billion as the firm secures large memory orders.
US export controls continue to restrict operations in China, where sales of permitted previous-generation Hopper chips account for less than 1% of total revenues. It was also reported that the chipmaker agreed to invest $1.5 billion in an OpenAI data center with $105 billion in lease guarantees.
Photo: Shutterstock
Read also: War&Sanctions: Nvidia Jetson microcomputer discovered in new Russian “monokhrom” missile
