Nvidia CFO Projects $20 Billion in CPU Revenue for 2024
Nvidia CFO Colette Kress has laid out an ambitious forecast for the company's central processing unit (CPU) business, projecting approximately $20 billion in revenue for the current fiscal year. This figure encompasses both standalone CPU sales and those integrated into complex systems like the Grace Blackwell and Vera Rubin platforms.
"We believe for this year, can be a total of about $20 billion worth of CPUs."
Kress highlighted the expanding role of Nvidia's CPUs, noting they are critical for enabling agentic AI workloads and post-training tasks. The company is not only embedding its CPUs in full systems but is also pursuing a new market strategy.
"We have the ability not only to just be inside Grace Blackwell... we now have an opportunity to also have what we call a standalone CPU and sell that."
The $1 Trillion Target and Capital Returns
Kress clarified that CEO Jensen Huang's projection of $1 trillion in cumulative revenue from 2025 to 2027 includes compute components (GPUs, CPUs, and systems) but does not include networking. The $20 billion CPU forecast is a foundational part of that trillion-dollar goal.
In a significant move to reward shareholders, Nvidia has also announced a major capital return program.
- Increased Share Buyback Authorization: The company raised its authorization to $80 billion.
- Dividend Increase: The quarterly dividend has been raised to $0.25 per share.
Kress explained the rationale behind the capital return, citing robust financial health and a balanced strategy.
"Given the strength of our growth, this gives us a great opportunity to advance what we can do in stock repurchases, but also what we can do in terms of improving the dividend for our shareholders."