On Wednesday, August 23, local time, chip giant Nvidia announced its fiscal 2024 second quarter results report。NVIDIA achieves revenue of 135 in second quarter, performance data shows.$0.7 billion, up 101% year-over-year, beating analysts' expectations; net profit under non-GAAP was 67.$400 million, up 242%。

In the face of such excellent performance data, Nvidia took advantage of the opportunity to give guidance for the third quarter.。Nvidia said that in the three months to October, the group's revenue will reach about $16 billion, far exceeding analysts' previous average expectations of $12.5 billion, this much-anticipated performance guidance is a shot in the arm for the market and investors, while highlighting Nvidia's position as the main beneficiary of the AI boom.。

Boosted by strong performance data, Nvidia overnight U.S. stocks closed up more than 3%, after the session is to continue the rally, once up nearly 10%。It is worth noting that since the beginning of the year, Nvidia shares have risen 222%, can be described as this year's U.S. stock technology brother.。

In response, investment firm Elazar Advisors analyst Haim Siegel (Chaim Siegel) released a research report, said: "I think next year at the time of writing this report, my (target price) is in a high position in Wall Street, but my estimate will have to be raised significantly.。"

He also raised Nvidia's price target to $1,600, about three times higher than Nvidia's current share price, which means Nvidia's earnings per share will increase 12 times in 2024.。But he said: "I still think my numbers are too conservative.。"

        

Take advantage of the strong growth of AI tuyere data center business, and the game business is gradually recovering.

       

In terms of business segments, the first is the data center business (Data Center), which performed particularly well this quarter.。Report data show that this quarter Nvidia data center revenue increased by 141%, up 171% year-on-year, to 103.$200 million。Nvidia said in the report that data center revenue mainly comes from cloud service providers and large consumer Internet companies.。Strong demand for Nvidia's HGX platform based on Hopper and Ampere-based GPUs is driven by the development of generative AI and large language models。

In addition, NVIDIA said that NVIDIA ® GH200 Grace ™ Hopper ™ superchips for complex artificial intelligence and HPC workloads will ship this quarter, and the second-generation HBM3e memory version is expected to ship in the second quarter of 2024.。

Nvidia also announced this quarter the NVIDIA L40S GPU, a general-purpose data center processor designed to accelerate the most complex applications, available from leading server manufacturers across platforms including NVIDIA OVX ™ and NVIDIA AI-ready servers with NVIDIA BlueField ® GPUs。

Let's look at the year-over-year turnaround in the quarter's gaming business (Gaming)。Data show that this quarter Nvidia game business revenue increased by 11% month-on-month, up 22% year-on-year, to 24.900 million dollars。Gaming business revenue growth, mainly due to Nvidia's new RTX 40 series of gaming GPUs being welcomed by consumers。Nvidia says the gaming market is returning to growth thanks to solid and cyclical customer demand for GeForce RTX 40 series GPUs on laptops and desktops。

In terms of games, Nvidia announced the addition of 35 DLSS games this quarter, including Diablo IV, Ricky and Jingle: Time Jump, Bode's Gate 3 and F1 23, as well as the community's path-tracking game Portal: Overture RTX using NVIDIA's RTX remix creator tools.。

At the same time, Nvidia also announced the launch of NVIDIA Avatar Cloud Engine (ACE) for games, a customized artificial intelligence model casting service that uses artificial intelligence-driven natural language interaction to transform games by bringing intelligence to non-playable characters.。

Professional Visualization also returns to good growth。Nvidia's revenue for the quarter was 3.$7.9 billion, up 28% from the previous quarter, but still down 24% from the same period last year.。

During the quarter, Nvidia announced the launch of three new desktop workstation RTX GPUs based on the Ada Lovelace architecture - NVIDIA RTX 5000, RTX 4500 and RTX 4000 - to provide the latest artificial intelligence, graphics and real-time rendering, which will be delivered during the quarter。

There is also a major release of the NVIDIA Omniverse platform, providing developers and industrial enterprises with new foundational applications and services to optimize and enhance their 3D pipelines with Open USD and generative AI.。Simultaneously forms the Open USD Alliance with Pixar, Adobe, Apple and Autodesk to promote the standardization, development, evolution and growth of common scenario description technology。

Finally, the self-driving business (Automotive)。Nvidia's second-quarter self-driving business revenue was 2.$5.3 billion, down 15% QoQ, but 15% YoY。Nvidia announced the launch of NVIDIA DRIVE Orin ™ to power the intelligent advanced driver assistance system of the new XPENG G6 Coupe SUV, and also announced a partnership with MediaTek to develop mainstream automotive chip systems for global original equipment manufacturers。

           

Product performance strong demand large supply can keep up？

        

Although Nvidia has been introducing more powerful chips to meet market demand for six months this year, capacity constraints and lack of supply remain challenges for Nvidia's growth in the first half of the year.。

In response, Nvidia CEO Huang Renxun was interviewed after the earnings release in an attempt to dispel one of investors' biggest concerns that chip production will not keep up with demand.。Although in the interview, Huang did not give a long-term forecast, but he said Nvidia chip supply will be in the rest of this year and next year "substantial increase."。

In addition, in the post-performance conference call, Nvidia management is also optimistic about the increase in supply in the second half of the year, and expects that supply will continue to improve in the coming quarters: "On the supply side, we plan to continue to increase supply in the coming quarters and fiscal years.。While the specific percentage increase is uncertain, we are optimistic about supply chain cooperation and improvement.。"

"Our data center supply chain, which includes HGX with 35,000 parts and a highly complex network, has been established in the past decade.。We also develop and certify additional capacity and suppliers for key aspects of the manufacturing process, such as chip packaging.。We expect supply to increase every quarter next year.。"

In addition, Nvidia also said that the new L40S GPU will help ease supply constraints, and a number of new products will also enrich the product portfolio.。

L40S is actually designed for different types of applications。H100 is designed for large-scale language models and processing, which is not the focus of L40S。

L40S focuses on fine-tuning the pre-trained model。It has a Transformer engine, which is powerful and can use multiple GPUs in a server。It is designed for hyperscale, which means that L40S servers can be easily installed in hyperscale data centers around the world。It uses standard racks, standard servers, everything meets the standard。Therefore, it is easy to install。

The L40S is designed for global enterprise T-systems, which is why HP, Dell, Lenovo and 20 other system manufacturers have partnered with us to build about 100 different configurations of enterprise servers to bring generative artificial intelligence to global enterprises.。

In summary, the L40S is indeed designed for different types of extensions。Of course it's still a big model, and it's also generative artificial intelligence, but its use cases are different。Now that L40S is off to a good start, global enterprises and hyperscale enterprises are scrambling to deploy L40S。

But in the end, Nvidia said that although it is increasing supply, the oversupply is expected to continue for some time to come due to excessive downstream demand.。