Nvidia reported this afternoon.
The data center business is now 90% of Nvidia.
And as we've discussed, the growth in data center revenue has been on a rhythm of about $4 billion a quarter since the second half of 2023.
That said, they reported a bump higher in data center revenue in today's report. But, they guided A LOT lower for next quarter. Did they pull forward some sales to boost the overall data center picture today? Maybe.
Here's a look at the past six quarters, plus the guidance for next quarter …
It is indeed the $4 billion drumbeat.
Again, while the speed of innovation in AI seems lightning fast, it's being constrained by Nvidia's inability to fulfill at a level that satisfies global demand. And it's because Taiwan Semiconductor, Nvidia's manufacturing partner, is clearly maxed out (operating at capacity).
With this all in mind, Jensen always delivers a glimpse into the future on his earnings calls.
What did he say?
He said we are just at the beginning of the age of AI – and he said it several times.
And just as some have thought the massive capex spending by the tech giants would be slowing down, Jensen implied that there would be endless building of computing capacity.
He said, "going forward, data centers will dedicate most of CapEx to accelerated computing and AI. Data centers will increasingly become AI factories and every company will have one, either renting or self-operated."
Surely a bottomless pit of computing demand can't solely be supplied from one company in Taiwan. This makes the case for a war-time like effort to build advanced-chip making capacity in the U.S.