Chipmaker Nvidia reported another huge jump in sales as the global push to build artificial intelligence (AI) systems continues at a rapid pace, according to BBC Business. The company said on Wednesday it brought in $96bn (£71bn) in revenue during the second quarter, more than double from a year ago, and expects revenue of $108bn next quarter.
Revenue beats Wall Street expectations
BBC Business reported that the revenue figures beat Wall Street's expectations, leading Nvidia shares to rise about 4% in after-hours trading. The company's data centre division alone generated $89bn last quarter, up 117% from a year ago, underscoring how much of the industry now depends on Nvidia's hardware.
| Metric | Q2 value |
|---|---|
| Total revenue | $96bn (£71bn) |
| Year-over-year change | More than double |
| Data centre revenue | $89bn |
| Data centre year-over-year growth | 117% |
| Next quarter revenue guidance | $108bn |
| Market capitalisation | Above $5tn |
| After-hours share move | +4% |
Essentially every notable tech company building AI tools and infrastructure, including Amazon, Meta, Google, and Microsoft, use Nvidia chips to do so, the BBC reported.
'AI has reached its inflection point'
"AI has reached its inflection point," CEO Jensen Huang said in prepared remarks, describing the infrastructure buildout as going "at full steam."
Nvidia's financial success and processors are now central to the AI boom, powering the data centres used to train and run AI models, according to BBC Business. Demand for that computing muscle has helped transform Nvidia into the world's most valuable firm, with a market capitalisation above $5tn.
Analyst reaction
Financial analysts said the strong results highlight Nvidia's ongoing momentum. Matt Britzman, senior equity analyst at Hargreaves Lansdown, called it "another monster set of results," noting that revenue and earnings both topped forecasts.
He said the guidance for next quarter "points to revenue comfortably above $110bn," according to BBC Business. The company's own guidance stood at $108bn.
Nvidia becomes a backer to its own customers
Nvidia's growing financial strength has also reshaped its role in the sector, the BBC reported. It has become a backer to those that rely on its chips, providing some funding to the likes of OpenAI, Anthropic, and SpaceX to help continue the costly buildout of AI infrastructure.
Competition and market impact
Competition is emerging – from customers designing their own processors and from cheaper suppliers in China – but the latest numbers suggest those challenges remain limited for now, according to BBC Business.
The stakes extend beyond the chipmaker itself. With around 40% of the US stock market concentrated in ten companies heavily invested in AI, Nvidia's fortunes matter far beyond Silicon Valley, the BBC reported.
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