Daijiworld Media Network – Washington
Washington, Aug 27: Chip giant Nvidia has reported a massive surge in quarterly revenue as demand for artificial intelligence (AI) computing continues to accelerate worldwide.
The company said on Wednesday that it recorded $96 billion in revenue in the second quarter, more than double the figure from the same period last year. Nvidia expects revenue to rise further to $108 billion in the next quarter.
Nvidia CEO Jensen Huang said AI had reached an "inflection point", with the global buildout of AI infrastructure progressing at full speed.
The results surpassed Wall Street expectations and sent Nvidia shares around 4 per cent higher in after-hours trading.
Nvidia's data centre business was the biggest contributor, generating $89 billion in revenue during the quarter, an increase of 117 per cent from a year earlier. The figures underline the growing dependence of major technology companies on Nvidia's processors to develop and operate AI systems.
Companies including Amazon, Meta, Google and Microsoft use Nvidia hardware for their AI infrastructure, helping drive continued demand for the chipmaker's products.
Financial analysts described the results as another strong performance for Nvidia. Matt Britzman, senior equity analyst at Hargreaves Lansdown, said revenue and earnings had exceeded forecasts and that the company's guidance pointed to revenue comfortably above $110 billion.
Nvidia's growing financial strength has also expanded its influence across the AI sector. The company has provided funding to firms including OpenAI, Anthropic and SpaceX, which rely heavily on investment to build costly AI infrastructure.
The combination of strong chip demand and rising AI investment has helped Nvidia become the world's most valuable company, with its market capitalisation exceeding $5 trillion.
Nvidia faces growing competition from technology companies developing their own processors as well as cheaper chip suppliers in China. However, the latest results suggest those challenges have yet to significantly weaken demand for its products.
With a significant share of the US stock market concentrated in major companies heavily invested in AI, Nvidia's performance is increasingly important beyond Silicon Valley. The latest results indicate that the global AI investment boom remains a major driver of the chipmaker's growth.