Zaid

The majority of the growth is coming from the data center business, which includes their AI chips.

Data center revenue was $62.3 billion, growing 75% year over year, and now accounts for over 91% of the company's total revenue.

You know, it wasn't that long ago that Nvidia was a gaming company, but their gaming division only brought in $3.7 billion in Q4.

These days, Nvidia is a full-on AI chips company.

You know, I was listening to the earnings call and on that call, Nvidia said that their data center business has increased by 13 times since the launch of ChatGPT.

I mean, that was like three and a half years ago.

So the growth in Nvidia's business has been absolutely crazy in a very short amount of time.

Now digging a little deeper, gross margins held strong at 75%, which was right in line with expectations.

Now there's been concerns that Nvidia's margins might start to slip, but that's not the case so far.

Honestly, I find it very impressive that Nvidia is selling hardware and able to generate software like margins.

And one number that really jumped out to me was their networking revenue.

Nvidia made nearly $11 billion in networking sales, which was up 263% year over year.

Now this networking business includes their NVLink technology and their Spectrum X ethernet switches.

This is the stuff that connects the hundreds of Nvidia GPUs together in data centers to create these massive GPU clusters.

So this shows that Nvidia's customers aren't just buying their chips, but they're also buying entire AI systems.

And speaking of Nvidia's customers, from this earnings report, we learned that the hyperscalers accounted for over 50% of Nvidia's data center revenue.

The hyperscalers include Microsoft, Meta, Amazon, and Google.

So Nvidia is making half the revenue from just four companies.

We're gonna talk more about that in a bit.

Overall though, if you zoom out, Nvidia ended their fiscal year with over $215 billion in revenue and $96.7 billion in free cashflow, which is just nuts.