Nvidia reported record quarterly revenue of $96.2 billion as spending on artificial-intelligence infrastructure accelerated, more than doubling sales from a year earlier and beating Wall Street expectations. The California chipmaker said revenue rose 18 percent from the previous quarter, while net income reached $59.69 billion for the three months ended July 26.
The company’s data-center division generated $89.0 billion, an increase of 117 percent from the same period last year, according to Nvidia’s results released on August 26. AP reported that adjusted earnings of $2.22 per share exceeded the $2.09 consensus estimate compiled by FactSet, while revenue surpassed analysts’ $92.27 billion forecast.
Nvidia forecast third-quarter revenue of $108.0 billion, plus or minus 2 percent. Reuters said that projection was above the $104.19 billion average estimate compiled by LSEG. The company did not include any data-center computing revenue from China in its outlook, highlighting uncertainty created by export controls and access to one of the world’s largest technology markets.
Chief executive Jensen Huang attributed the expansion to parallel investment by major AI laboratories, start-ups and developers of open models and physical AI. Nvidia also reported a 75 percent gross margin and said it returned about $26.0 billion to shareholders through share repurchases and cash dividends during the quarter.
Investors initially weighed the strong numbers against questions about China, component availability and whether Nvidia can preserve its dominant position as rivals expand competing products. Subsequent reporting by Axios said the shares gained more than 7 percent on August 27 after management indicated that revenue could grow about 70 percent in the next fiscal year, well above the growth investors had expected.
The results reinforce Nvidia’s role as a key measure of global AI investment because its processors underpin large data centers built by cloud providers, governments and technology companies. Attention will now turn to whether suppliers can support the planned expansion and whether Nvidia reaches its $108 billion forecast without counting on Chinese data-center chip sales.
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