NVIDIA stock trades near records as data center revenue and AI demand expand
Published on 07/17/2026 at 08:42 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
NVIDIA Corp. (ISIN US67066G1040) has seen NVIDIA stock trade close to record territory in recent months as investors focus on the company’s rapid growth in accelerated computing and artificial intelligence hardware. In its results for the quarter ended 28 April 2024, the company reported a sharp increase in revenue and profit from data center products that underpins the current market valuation and the broader enthusiasm around AI chips.
Revenue up over 200 percent
According to NVIDIA’s latest reported quarter ended 28 April 2024, total revenue reached approximately $26.0 billion, compared with about $7.2 billion in the same quarter a year earlier, implying growth of around 250 percent year on year. Within this, data center revenue – largely driven by demand for GPUs used in training and running large AI models – accounted for the majority of sales and showed an even steeper increase compared with the prior-year period, highlighting how accelerated computing has become the dominant part of the business.
The company also reported a pronounced expansion in profitability in that quarter, with operating income and net income rising far faster than revenue. Gross margin improved meaningfully compared with the prior year, supported by the high value of AI GPU platforms and related networking equipment. The result is that earnings per share for the quarter were several times higher than a year earlier, underlining how the shift toward data center products has changed NVIDIA’s earnings profile compared with its earlier focus on gaming graphics cards.
Data center and gaming mix shifts
In the quarter ended 28 April 2024, NVIDIA’s data center segment generated well over three quarters of total company revenue, a substantial change compared with the prior year when gaming and professional visualization represented a larger share of the business mix. This shift reflects the surge in demand from cloud providers and enterprises building AI infrastructure, as well as from leading technology platforms rolling out generative AI services to end users.
By contrast, gaming revenue in the same period grew more modestly from its prior-year level. While the gaming segment continues to benefit from adoption of newer architectures, its growth pace lags behind the data center segment. For investors, this means NVIDIA is now primarily valued as an AI and data center infrastructure supplier rather than as a cyclical gaming hardware vendor, and the company’s guidance and commentary increasingly focus on capacity constraints, lead times, and product roadmaps in server GPUs and networking.
Further information on NVIDIA stock and filings
Investors can review regulatory filings and additional news on NVIDIA Corp. and its stock to better understand valuation, risks, and upcoming company events.
H100 and AI platforms drive demand
A key product family behind NVIDIA’s recent results is its line of data center GPUs such as the H100, which are deployed in large clusters alongside networking and software to create full-stack AI platforms. These systems are sold to hyperscale cloud operators, enterprise customers, and research institutions that need high-performance computing for training generative AI models and running inference workloads at scale.
NVIDIA’s platform strategy combines GPUs, CPUs, networking, and software libraries optimized for AI and high-performance computing. This enables customers to accelerate workloads in data centers more efficiently than with general-purpose CPUs alone. As AI models become larger and more complex, demand for such specialized hardware has risen quickly, and NVIDIA’s reported revenue and margin expansion in recent quarters illustrate how central these platforms have become for the AI ecosystem.
Stock valuation and market capitalization
On major US exchanges, NVIDIA stock is listed under the symbol NASDAQ: NVDA. The company’s market capitalization has climbed into the trillion-dollar range over the past year, reflecting expectations that elevated AI hardware demand will persist. At various points in 2024, NVIDIA’s equity value surpassed $2 trillion, placing it among the most valuable publicly traded companies globally and underscoring how strongly investors are pricing in continued growth in AI-related revenue.
From an investor perspective, such a high market capitalization means valuation metrics like price-to-earnings and price-to-sales ratios are elevated compared with many other semiconductor companies. However, those ratios are supported by the rapid expansion in revenue and profit described in recent quarterly reports. If data center revenue were to grow at a slower pace or margins were to compress, the valuation could come under pressure, which is why attention to guidance, capacity plans, and competitive dynamics is intense around each earnings release.
Product segment context
Beyond data center GPUs, NVIDIA continues to develop and sell graphics processors for gaming PCs, professional visualization solutions, automotive platforms, and embedded systems. Gaming GPUs remain important for consumer and prosumer markets, powering high-resolution displays and advanced visual effects in modern games. Professional visualization products are used in industries such as design, architecture, and media production, where real-time rendering and simulation are critical.
In automotive and edge computing, NVIDIA offers system-on-chip platforms and software to support driver-assistance systems, autonomous driving research, and embedded AI applications. These segments contribute to diversification of revenue, although they currently represent a smaller share of total sales than the data center segment. Over time, growth in these areas could provide additional support to NVIDIA’s overall revenue base and help smooth out potential fluctuations in data center demand.
NVIDIA stock and long-term AI trends
The recent trajectory of NVIDIA stock is closely tied to long-term trends in artificial intelligence and accelerated computing. As enterprises build more AI models to handle tasks such as search, recommendation, language understanding, and image analysis, the need for high-performance hardware increases. NVIDIA’s GPUs and AI platforms are positioned at the center of this shift, and recent financial results with revenue up several-fold compared with prior-year periods show how quickly that demand has translated into reported numbers.
Looking ahead, the sustainability of this growth will depend on several factors, including the pace at which customers deploy new AI workloads, competition from other chip makers, and broader macroeconomic conditions that influence capital spending in data centers. For now, the combination of strong recent revenue growth, high margins, and a large and growing addressable market has supported NVIDIA’s share price and helped keep NVIDIA stock in the spotlight for investors focused on technology and AI themes.
Representative AI hardware product
Among NVIDIA’s current products, the H100 data center GPU is a representative example of the hardware driving the company’s rapid revenue growth. It is designed for training large neural networks and running complex inference workloads, and is typically deployed in clusters along with NVIDIA networking components and software that enable customers to scale AI applications efficiently. While specific unit sales and segment revenue for this product family are not broken out in detail, the overall data center revenue figures reported for the quarter ended 28 April 2024 indicate how central such GPUs have become in NVIDIA’s portfolio.
NVIDIA stock and trading context
NVIDIA stock, traded as NASDAQ: NVDA in US dollars, represents equity exposure to a company whose financial results are now dominated by AI and data center revenue. The strong growth reported in the quarter ended 28 April 2024, with total revenue rising from about $7.2 billion to roughly $26.0 billion year on year and data center revenue accounting for the majority of sales, has reinforced the view that NVIDIA is a core supplier to global AI infrastructure. For retail investors, the key considerations often include the durability of this growth, the level of competition in AI chips, and the valuation implied by NVIDIA’s current market capitalization.
Key facts on NVIDIA Corp.
- Company: NVIDIA Corp.
- ISIN: US67066G1040
- Ticker: NASDAQ: NVDA
- Trading venue: NASDAQ
- Sector / Industry: Information Technology / Semiconductors & Semiconductor Equipment
- Index membership: S&P 500, Nasdaq 100
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