WEB DESK: Nvidia, the world’s most valuable chipmaker, reported record quarterly earnings on Wednesday, underscoring the surging global demand for artificial intelligence (AI).
The California-based company said its revenue for the May–July quarter rose 56 per cent year-on-year to $46.74 billion, while profit surged 59pc to $26.42bn.
The blockbuster results, however, failed to impress investors, with Nvidia’s shares slipping more than 3pc in after-hours trading — a sign of the lofty expectations surrounding the $4.4 trillion company.
Chief executive Jensen Huang said production of the company’s newest platform, Blackwell Ultra, was running at “full speed”, calling demand “extraordinary”. “The AI race is on, and Blackwell is the platform at its centre,” he said.
Looking ahead, Nvidia forecast revenue of $54bn (±2pc) for the current quarter, slightly above Wall Street estimates.
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Still, challenges loom. Nvidia’s latest sales excluded shipments to China due to US export restrictions on advanced chips. Although the Trump administration recently lifted a ban on sales of Nvidia’s H20 chip designed for the Chinese market, Beijing has urged its firms to avoid relying on the US company, clouding prospects in the world’s second-largest economy.
Since early 2023, Nvidia’s stock has surged more than eleven-fold, including a 30pc rise this year, making it one of the biggest beneficiaries of the AI boom. The company recorded five straight quarters of triple-digit revenue growth between mid-2023 and 2024, largely on demand from Microsoft, Meta and Amazon.
But the meteoric rise has fuelled debate about whether the boom is sustainable. OpenAI chief Sam Altman recently cautioned that investors may be “overexcited” about AI’s potential.
For now, though, Nvidia shows little sign of slowing. As one market newsletter put it: “The AI revolution is in full swing, and Jensen Huang is working overtime to keep Nvidia at the front of the race.”
