Nvidia has reported another record surge in sales as the global artificial intelligence (AI) boom drives unprecedented demand for its advanced semiconductor chips and data center technology.
The chipmaker said second-quarter revenue reached $96 billion (£71 billion), more than double the figure recorded during the same period last year. Nvidia also forecast revenue of $108 billion for the next quarter.
“AI has reached an inflection point,” Nvidia chief executive Jensen Huang said in prepared remarks, adding that AI infrastructure development is moving “at full speed.”
Nvidia’s latest revenue exceeded Wall Street expectations, sending the company’s shares 4.7% higher in after-hours trading.
The company’s data center business generated $89 billion in revenue during the quarter, an increase of 117% compared with the same period a year earlier. The results underline the technology industry’s growing reliance on Nvidia’s AI hardware.
Major technology companies developing AI tools and infrastructure—including Amazon, Meta, Google, and Microsoft—use Nvidia chips to power their systems.
Financial analysts said Nvidia’s strong earnings demonstrate that the company continues to benefit from surging global demand for AI computing power.
Matt Blitzman, senior equity analyst at Hargreaves Lansdown, described the figures as “another monster result,” saying both revenue and profits surpassed expectations.
He added that Nvidia’s guidance for the next quarter suggests revenue could “comfortably exceed $110 billion.”
Nvidia’s financial strength has also expanded its influence across the rapidly growing AI sector.
The company has invested in businesses that depend on its chips, including OpenAI, Anthropic, and SpaceX, helping fund the costly development of AI infrastructure.
Nvidia’s processors and financial success now sit at the heart of the AI boom, powering data centers used to train and operate advanced AI models.
Strong demand for its computing technology has helped Nvidia become the world’s most valuable company, with a market capitalization of more than $5 trillion.
The company faces competition from customers developing their own AI processors, as well as lower-cost chip suppliers in China. However, Nvidia’s latest financial results suggest those challenges remain limited for now.
Nvidia’s performance has implications well beyond Silicon Valley. Around 40% of the US stock market is concentrated in 10 companies investing heavily in artificial intelligence, making the chipmaker’s growth increasingly important to the wider economy.
Source: www.bbc.co.uk