NVIDIA Sold “Half a Million” AI GPUs In Q3 2023, Courtesy of Demand From Major Tech Firms

NVIDIA's Q3 financials saw a huge boost in revenue, with a hefty portion coming from the data center AI GPU segment. Now we finally have the figures for "the volume of products" that NVIDIA sold during the period.

The research firm Omdia has dug deep into what Team Green was "cooking" during Q3 2023, and it turns out that the results obtained will indeed shock everyone. It is disclosed that NVIDIA sold nearly a whopping "half a million" AI GPUs in the quarter, mainly consisting of the Hopper H100 and the Ampere A100. The sale volumes are a sight to see in the industry, and it has led NVIDIA to a position where it has exerted dominance in the markets. NVIDIA's plans to sell millions of GPUs in 2024 seem achievable, judging by the fact that their quarterly performance is a testament to the company's dedication.

Omdia has also broken down into which companies actually acquired NVIDIA's AI GPUs during the period, and it looks like Meta and Microsoft were on top of the list, securing 150,000 units of NVIDIA's current arsenal of AI GPUs. Both companies are technically well involved in the generative AI race, especially when it comes to integrating AI-focused features into mainstream applications, which is why the firms are hungry for "compute power", and NVIDIA is present to fulfill it. Other notable mentions are the likes of Google, Oracle, and Tencent, who are utilizing NVIDIA's AI GPUs for their respective CSP divisions.

NVIDIA has also seen a decent share of orders from Chinese markets, amounting to around 30% of the company's orders in Q3 2023, which shows how important satisfying the client base in the region is. However, with the new US policies, it looks like Team Green might find it hard to order fulfillment, mainly since the company has been exposed to a new set of export restrictions. Despite the fact that NVIDIA is looking for workarounds, it is predicted that the company might see a drop in revenue from the Chinese markets, possibly creating a gap for emerging competitors like Huawei.

Omdia's analysis says that NVIDIA is looking strong going into 2024 and that quarterly sales could even boost further since the demand for H100/A100 is rapidly increasing to the extent that orders have exceeded a 52-week delivery time. Even TSMC has stated that NVIDIA is one the path to being the world's biggest hip company in 2024.

With the revenue from the server industry expected to reach around $200 billion in 2027, it looks like NVIDIA is all set to fully capitalize on the growing markets, and the company has already disclosed plans to make its AI offerings more competitive, through the adoption of next-gen semiconductor and memory standards along with significant improvements within software resources.

News Source: Omdia