"Fulamak is terrible, Nvidia seems to be growing quietly."
The growth of the artificial intelligence (AI) industry is increasing as Nvidia posted very optimistic results where its fourth quarter revenue was $22.1 billion. So, here are 5 features of Nvidia's revenue that could turn into a trend in the future.
AI Revenue Becomes Firm's Top Priority
Nvidia's decision has reinforced the idea that AI revenue* will be the main source of income for many people, so the tech giants need to accelerate their AI development to start printing AI revenue.
*Refers to using AI algorithms and machine learning techniques to analyze large volumes of data, identify patterns or trends, reveal hidden insights and make accurate predictions that enable organizations to achieve predictable revenue growth
Data center sales including Nvidia's AI flagship sales more than tripled to $47.5 billion for fiscal year 2024 and were partly driven by Nvidia's record fourth-quarter revenue of about $18.4 billion.
China's Chip Ban Is Not a Big Concern
Despite not having the required permission from the United States (US) government to export banned goods to China, Nvidia said that it has started shipping alternatives that do not require a license for the Chinese market.
So here we can see the concerns of market participants about the sanctions on China and the overall fall in the chip trade may be devastating as the firm is now looking for suitable alternatives to ensure its business is profitable.
AI Market Growth Is Key
In the future, AI will become an important source of income for IT firms as industry surveys show that a large proportion of IT business operations are focused on AI.
Due to the continuous release of new product lists and subscription models, AI will likely become the main focus and user base provider for many firms in the future.
AI Supply Chain To Remain Stable
The supply chain of the industry leader in AI has struggled to keep up with the rapid demand for Nvidia's processors, so a stable AI supply chain needs to ensure manufacturing can continue even in an unstable environment.
It counters disruptions to international product movement by detecting early warning signs and proactively and consistently adapting to changing conditions.
Nvidia Enterprise AI software
Following on from its software and services offerings, Nvidia has seen great progress as it has reached a $1 billion annual revenue run rate which indicates the widespread adoption of AI software by customers.
In the future, the main metric to evaluate the revenue and growth of any firm will be analyzing the software growth and overall performance of that particular segment.
