Nvidia Reports Staggering Profit Growth

Nvidia is reporting a staggering 769% annual profit gain, which has led to its shares rising by more than 16% in the last day. The company's rapid growth has been nothing short of extraordinary. For context, Nvidia started 2023 valued at $350 billion. Now, it's worth just south of $2 trillion. Nvidia recently passed Amazon, and now trails only Microsoft and Apple as the third most valuable publicly traded company. Not to mention, Nvidia's success has caused the company's CEO Jensen Huang to skyrocket up the list of the world's richest people.

While gamers mostly know Nvidia due to the company producing some of the best graphics cards on the market, much of the tech giant's recent growth has been due to AI. AI has long been a buzzword in tech circles, but Nvidia's strides in that area are one of the main reasons why everyone is now talking about the corporation based out of Santa Clara, California.

The data center portion of Nvidia's business, which houses many of its AI endeavors, has seen a revenue growth of 409% from last year's fourth quarter. Data centers, Nvidia's fastest-growing division, now make up by far the largest portion of the business in terms of revenue, with gaming falling further and further behind.

What is likely to interest gamers is that Nvidia's gaming revenue now only accounts for 12% of the company's total earnings. For context, gaming accounted for more than a quarter of the company's total earnings in the previous year. Still, with gaming taking up less and less of the company's revenue share, PC gaming enthusiasts may worry that the graphics card portion of the business may take a back seat. Nvidia recently released the RTX 4080 Super, but that's perhaps the last revision until the company pushes out the inevitable 50-series GPUs.

While the gaming portion of the business was flat from the previous quarter, revenue was up 56% from the previous year. This portion of the business accounted for $10.4 billion alone. In fact, Nvidia has often