Nvidia’s Q2 revenue tops $96.2 billion on strong AI chip demand
Nvidia reported net income of $59.69 billion for the May-July period as revenue more than doubled to $96.22 billion, surpassing Wall Street forecasts. The company also projected about $108 billion in current-quarter revenue, signaling continued acceleration in AI infrastructure spending.
Nvidia’s latest quarterly results again cleared Wall Street’s expectations as revenue for its high-end artificial intelligence chips soared, the newest sign that spending on AI infrastructure remains strong. The Santa Clara, California, company reported net income of $59.69 billion, or $2.46 per share, for the May-July period, up from $26.42 billion, or $1.08 per share, in the same quarter a year earlier.
Revenue more than doubled from a year earlier to $96.22 billion, surpassing the $92.27 billion average forecast among analysts surveyed by FactSet. Excluding certain items, earnings came to $2.22 per share, well above the $2.09 per share consensus estimate. The results extend a pattern that has held for the past three years, since Nvidia’s high-end chips became the preferred building blocks for AI systems.
Along with higher profit and revenue, however, operating expenses surged 55% to $8.41 billion. For the current quarter, Nvidia forecast revenue of about $108 billion, ahead of the $104.86 billion analysts are projecting. Hitting that target would translate into a roughly 89% increase from the same period last year, an indication that the company’s growth rate is still accelerating.
Nvidia’s shares fell 1.8% in after-hours trading shortly after the results were released. The stock ended the regular session 1.6% lower and remains up 12.4% so far this year.
The company’s chief executive, Jensen Huang, made an early bet on chips and software for artificial intelligence, a wager that has positioned Nvidia at the center of a global investment wave. Data center operators, cloud providers, and enterprises have been racing to deploy AI models, driving demand for the company’s graphics processors.
The latest figures suggest that demand shows no sign of cooling. Nvidia’s data center segment has become the dominant driver of its business, and the company has been working to expand supply of its newest chips to meet orders. The company has also faced questions about how long the spending boom can last, but its guidance for the current quarter points to continued momentum.
Investors will be watching whether Nvidia can maintain its pace of beating estimates as it ramps up production of next-generation products. The company’s results are closely watched across the technology sector because they serve as a barometer for AI-related spending by some of the world’s largest companies.
