[News] No Demand Lull? NVIDIA Reportedly Points Out Hopper Will Remain in Short Supply for Some Time

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The market was originally concerned that NVIDIA might face a demand lull during the transition from its Hopper series GPUs to the Blackwell series. However, the company executives clearly stated during the latest financial report release that this is not the case.

According to reports from MarketWatch and CNBC, NVIDIA CFO Colette Kress stated on May 22 that NVIDIA’s data center revenue for the first quarter (February to April) surged 427% year-over-year to USD 22.6 billion, primarily due to shipments of Hopper GPUs, including the H100.

On May 22, during the earnings call, Kress also mentioned that Facebook’s parent company, Meta Platforms, announced the launch of its latest large language model (LLM), “Lama 3,” which utilized 24,000 H100 GPUs. This was the highlight of Q1. She also noted that major cloud computing providers contributed approximately “mid-40%” of NVIDIA’s data center revenue.

NVIDIA CEO Jensen Huang also stated in the call, “We see increasing demand of Hopper through this quarter,” adding that he expects demand to outstrip supply for some time as NVIDIA transitions to Blackwell.

As per a report from MoneyDJ, Wall Street had previously been concerned that NVIDIA’s customers might delay purchases while waiting for the Blackwell series. Sources cited by the report predict that the Blackwell chips will be delivered in the fourth quarter of this year.

NVIDIA’s Q1 (February to April) financial result showed that revenue soared 262% year-over-year to USD 26.04 billion, with adjusted earnings per share at USD 6.12. Meanwhile, NVIDIA’s data center revenue surged 427% year-over-year to USD 22.6 billion.

During Q1, revenue from networking products (mainly Infiniband) surged more than threefold to USD 3.2 billion compared to the same period last year. Revenue from gaming-related products increased by 18% year-over-year to USD 2.65 billion. Looking ahead to this quarter (May to July), NVIDIA predicts revenue will reach USD 28 billion, plus or minus 2%.

NVIDIA’s adjusted gross margin for Q1 was 78.9%. The company predicts that this quarter’s adjusted gross margin will be 75.5%, plus or minus 50 basis points. In comparison, competitor AMD’s gross margin for the first quarter was 52%.

Read more

• [News] CoWoS Production Capacity Reportedly Falls Short of GPU Demand
• [News] NVIDIA’s H100 Chip Heat Declines, CoWoS Capacity Eases

(Photo credit: NVIDIA)