Nvidia reports exceptionally strong demand for AI chips across all customer segments.
Nvidia reported a profit of $31.9 billion on record quarterly revenue of $57 billion, driving a more than 3% rise in its shares. The company earned about 60% more money in the quarter compared to the same period last year. These impressive results come amid growing speculation among Wall Street analysts about an AI bubble, with all eyes on how Nvidia, the industry leader, will address these concerns.
Most of the company's earnings came from its graphics processing unit (GPU) division for data centers. Nvidia's data center business generated revenue of $51.2 billion, representing 25% growth from the previous quarter and 66% growth compared to the same period last year. Revenue for the current quarter is expected to reach $65.0 billion, which is nearly $3 billion more than Wall Street analysts' forecasts.
Nvidia CEO Jensen Huang highlighted the company's strong momentum, stating: "Blackwell sales are off the charts, and cloud GPUs are sold out. The artificial intelligence ecosystem is growing rapidly — with more new manufacturers of base models, more startups in the field, in more industries and in more countries." During this period, Nvidia announced strategic partnerships with OpenAI to deploy systems with at least 10 gigawatts of power for next-generation AI infrastructure, and Anthropic will use 1 gigawatt of computing power with Nvidia's latest systems.
Nvidia was valued at more than $4.5 trillion based on the number of shares issued, having become the first company to reach a market value of $4 trillion in July last year. Competitors in the AI industry continue investing billions of dollars in Nvidia's valuable GPUs to power the technology, despite questions about how the investments will ultimately pay off.
The company faces headwinds from geopolitical tensions, as Nvidia is embroiled in President Donald Trump's trade war with China. Beijing has responded by expressing national security concerns about Nvidia's chips and calling on Chinese companies to rely on local suppliers.