NVIDIA reported $13.507 billion in revenue for the second quarter of fiscal 2024, ended July 30, 2023, up 101% from a year earlier and 88% sequentially. The result exceeded its previous outlook of approximately $11 billion. The decisive story was Data Center: revenue reached a then-record $10.323 billion, roughly 76% of the quarter’s total, as cloud providers and large internet companies expanded infrastructure for generative AI.
NVIDIA also forecast approximately $16.0 billion in Q3 FY2024 revenue, plus or minus 2%. Because this is a historical analysis, that forecast should not be confused with current guidance or a current company record.
What NVIDIA reported on August 23, 2023
NVIDIA announced its Q2 FY2024 results on August 23, 2023, for the fiscal quarter that ended July 30. Its own earnings release called the revenue a quarterly record at the time; it does not establish that $13.507 billion remains NVIDIA’s all-time record today.
| Measure | Q2 FY2024 result |
|---|---|
| Total revenue | $13.507 billion, up 101% year over year and 88% sequentially |
| Data Center revenue | $10.323 billion, up 171% year over year and 141% sequentially |
| GAAP gross margin | 70.1% |
| Non-GAAP gross margin | 71.2% |
| GAAP net income | $6.188 billion |
| GAAP diluted EPS | $2.48 |
| Non-GAAP diluted EPS | $2.70 |
The headline shorthand “$13 billion” rounds the reported $13.507 billion. Both EPS figures matter: $2.48 is GAAP diluted earnings per share, while $2.70 excludes items under NVIDIA’s non-GAAP methodology. The release is available from NVIDIA’s investor-relations site.
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Data Center explains why the quarter was exceptional
Data Center supplied approximately three-quarters of total revenue ($10.323 billion divided by $13.507 billion). NVIDIA said cloud service providers and large consumer-internet companies were buying accelerated-computing infrastructure for generative AI and large language models. That made this more than a conventional gaming-GPU recovery.
A platform, not just a chip
The demand covered NVIDIA’s Hopper generation, including the H100 Tensor Core GPU, HGX multi-GPU systems and Grace Hopper Superchips. L40S broadened the product range for data-center AI and graphics workloads. InfiniBand and other networking products helped connect large clusters, while CUDA, libraries, NVIDIA AI Enterprise and DGX Cloud extended the offering into software and managed services.
This platform approach can increase switching costs because customers adopt compute, interconnects, systems and software together. It also makes deployments more complex and can increase dependence on NVIDIA’s supply chain and ecosystem.
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Other segments grew, but did not drive the surprise
| Segment | Q2 FY2024 revenue | Year-over-year change |
|---|---|---|
| Data Center | $10.323 billion | +171% |
| Gaming | $2.486 billion | +22% |
| Professional Visualization | $379 million | +24% |
| Automotive | $253 million | +15% |
| OEM and Other | $73 million | -15% |
Gaming was recovering as channel inventories normalized and GeForce RTX 40-series demand improved. Its 22% growth was meaningful, but Data Center’s 171% growth and much larger revenue base changed NVIDIA’s mix toward enterprise computing. Professional Visualization and Automotive remained comparatively small.
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The shift toward high-value accelerated-computing platforms supported higher margins. GAAP gross margin rose to 70.1% from 43.5% a year earlier; non-GAAP gross margin reached 71.2% from 45.9%. Net income increased to $6.188 billion from $656 million, and GAAP diluted EPS rose to $2.48 from $0.26.
The year-over-year comparison was unusually favorable because Q2 FY2023 included a $1.34 billion inventory-related charge, according to NVIDIA’s SEC filing. The improvement therefore reflected both genuine Data Center mix and a depressed prior-year baseline. The filing provides the detailed accounting discussion at SEC.gov.
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Management projected another sharp increase
NVIDIA’s Q3 FY2024 outlook was approximately $16.00 billion in revenue, plus or minus 2%. It expected GAAP gross margin of 71.5% and non-GAAP gross margin of 72.5%, each with a 50-basis-point range.
| Q3 FY2024 guidance item | Published outlook |
|---|---|
| Revenue | $16.00 billion ±2% |
| GAAP gross margin | 71.5% ±50 basis points |
| Non-GAAP gross margin | 72.5% ±50 basis points |
| GAAP operating expenses | Approximately $2.95 billion |
| Non-GAAP operating expenses | Approximately $2.00 billion |
| Other income and expense | Approximately $100 million of income, excluding gains and losses from non-affiliated investments |
| GAAP and non-GAAP tax rates | Approximately 14.5% ±1 percentage point, excluding discrete items |
The importance of the guidance was its sequential direction: NVIDIA was forecasting another major step up after already exceeding its approximately $11 billion prior outlook. The detailed figures appear in the Q2 FY2024 CFO commentary.
Supply constraints and commitments were part of the story
Demand was rising faster than NVIDIA could immediately supply some AI systems. Advanced packaging, high-bandwidth memory, manufacturing capacity, networking and system integration could all limit deliveries. At quarter-end, NVIDIA reported $11.15 billion in purchase commitments and obligations for inventory and capacity, plus $3.81 billion in prepaid supply agreements.
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Those commitments helped secure capacity for customers, but they also created downside risk. If AI spending slowed, customers delayed orders or a product transition made inventory obsolete, NVIDIA could face excess stock or weaker returns on those commitments.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Risks investors had to weigh
Customer concentration
Cloud providers and large internet companies supplied much of the demand. Their scale can accelerate growth, but a small group of buyers can also influence order timing, pricing and deployment decisions.
Competition and custom silicon
AMD, specialized accelerator vendors and internally designed chips offered alternatives. NVIDIA’s CUDA ecosystem and integrated platform were competitive advantages, not proof that customers had no substitutes. Hyperscalers could seek custom accelerators or different cloud architectures over time.
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Export controls
NVIDIA disclosed that the U.S. government had imposed additional licensing requirements for a subset of A100 and H100 products destined for certain customers and regions, including some Middle Eastern countries. The company also faced exposure to restricted markets such as China. These were risks known in the Q2 FY2024 filing; later policy changes should not be retroactively folded into what management knew on August 23, 2023. See the Form 10-Q.
Return on AI investment
The quarter demonstrated demand at scale, not that every AI deployment would earn attractive returns or that infrastructure spending would grow indefinitely. Customers still had to turn expensive training and inference capacity into revenue or productivity gains.
Shareholder returns
NVIDIA returned $3.38 billion to shareholders during the quarter, including 7.5 million repurchased shares costing $3.28 billion. It had $3.95 billion remaining under the existing authorization at quarter-end and approved a new $25 billion authorization on August 21, 2023, without an expiration date. The quarterly cash dividend was $0.04 per share, payable September 28, 2023, to shareholders of record September 7.
Why Q2 FY2024 matters historically
The quarter supplied an unusually clear financial chain: generative-AI demand led cloud and internet companies to buy Hopper-based compute, HGX systems and networking; Data Center became roughly 76% of revenue; the mix lifted margins and earnings; and management guided to another large sequential increase. It was an early, measurable demonstration that generative AI had become a major commercial infrastructure cycle—not merely a temporary gaming upswing.
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