Alphabet & Google CFO, Ruth Porat mentioned in the latest Q2 earnings that "total cost of revenues was $30.1 billion, up 15%, primarily driven by Other Cost of Revenues, which was $17.9 billion, up 17%. The biggest factor here was costs associated with data centers and other operations."
Again, when talking about capex "Turning to capex, the largest investments in the second quarter were in servers, followed by data centers and office facilities."
As of Q1 2023, data centers are Nivdia's largest revenue stream, over taking gaming for the firs time. Will Google's spend on data centres this quarter bode well for Nvidia, taking the pressure off the gaming sector due to recession fears?
Nvidia's first-quarter revenue was a record $3.75 billion, up 83% from a year ago and up 15% from the previous quarter.
I legit can’t wait for Nvidia’s earnings. Save the best for last is how I think of it lol. Data center revenue will definitely help take pressure of the gaming sector. Didn’t know Google had said that because I don’t follow them but that’s reality good news for us nvidia shareholders
This is such a great point you raise. Could lead to growth for NVDA but also is a create (customer) concentration risk, especially when those customers like Google also creat their own chips