Introduction
NVIDIA can be credited with the popularization of Graphics Processing Units (GPUs) which also constitute a major portion of its revenue share. It is primarily concerned with selling these specialized chips which cater to industries like gaming, automotive, robotics, cryptocurrency, mining, professional visualization, OEMs, etc. A Statista report suggests that NVIDIA amassed a whopping $11.9 billion through GPU sales in 2023. The graphics segment of the company is its pivotal revenue generator accounting for 87% of its total revenue.
This, however, is not NVIDIA’s only source of revenue. The Covid-19 pandemic has been instrumental in uplifting the company’s finances. The demand for its products skyrocketed during the pandemic alongside the surging demand for AI solutions, hyper-scale and cloud computing.
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Following is a breakdown of NVIDIA’s revenue model:
GPUs For Gaming and PCs
Its graphics segment comprising GeForce GPUs empowers gamers globally. Additionally, it also provides gaming platform solutions, infrastructure, and game streaming service GeForce NOW. It also hosts GRID software for cloud-based visual and virtual computing, Quadro/NVIDIA RTX GPUs for enterprise design, and car platforms for infotainment systems.
Compute and Networking (Data Centers)
NVIDIA’s compute and networking segment comprises Data Center platforms, AI solutions, and high-performance and accelerated computing. Apart from this, t contains networking and integrated solutions, the Jetson for robotics and other embedded platforms, the automotive AI Cockpit, autonomous driving development agreements, and autonomous vehicle solutions.
Additionally, Nvidia makes money from its data center operations. Most of the main cloud service providers, including Amazon, Alibaba, and Microsoft, run on technology from Nvidia. GPUs from Nvidia are widely used in high-performance computing (HPC) and artificial intelligence (AI) applications by big businesses and organizations.
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For the first time ever in Nvidia’s history, data center income outpaced gaming revenue in 2021. Nvidia’s data center business will expand, constituting a sizable source of revenue for the company fueled by the rising demand for AI and HPC.
Automotive Industry
NVIDIA’s cutting-edge AI and GPU technologies for autonomous vehicles constitute one of the main ways Nvidia generates revenue in the automotive sector. This comprises data center infrastructures, autonomous technologies, in-car computer operators, and end-to-end solutions including frameworks and software toolkits.
Professional Visualization
NVIDIA’s sale of GPUs in the gaming sector has driven its success in the professional visualization sector. Its GPUs have made a name for themselves owing to their outstanding performance, excellent graphics, and cutting-edge capabilities that meet the needs of professional workflows.
These processors support a variety of applications like computer-aided design (CAD), virtual reality (VR), simulation, and rendering in strong workstations, servers, and data centers.
