Nvidia Shines with Record $46.7B Revenue as Global Demand for Chips Surges

Prime Highlights:

Nvidia posted $46.7 billion revenue, a 56% jump from the same period last year, driven by strong demand from big technology firms.
The company expects revenue to climb to $54 billion next quarter, showing confidence despite trade restrictions.

Key Facts:

Data centre revenue rose to $41.1 billion, 56% higher than last year, though slightly below analyst forecasts.
Nvidia became the world’s first $4 trillion company in July, underlining its dominant position in the global chip market.

Key Background:

Santa Clara-based chip designer Nvidia has posted another quarter of strong growth, powered by soaring demand for artificial intelligence (AI) chips, even as it continues to navigate political tensions between the United States and China.

Over three months until July, the company registered revenue of $46.7 billion (£34.6 billion), an impressive upsurge of 56 percent compared to the period of the year before.

Chief Executive Jensen Huang highlighted the scale of this growth, saying that four major firms have doubled their investments to $600 billion a year. “The AI race is now on,” Huang remarked, adding that AI is set to become a major contributor to global economic growth, with Nvidia playing a crucial role in supplying the hardware backbone.

Nvidia’s data centre business remained strong, bringing in $41.1 billion in revenue, which is 56% higher than the previous year. Still, the results were a bit below what analysts expected, causing a small drop in Nvidia’s share price after trading hours. Even so, the company expects revenue to rise to $54 billion in the current quarter, higher than what Wall Street had predicted.

Nvidia has made history by reaching a value of $4 trillion in July, becoming the first company in the world to hit this milestone. Still, it faces ongoing challenges related to Washington’s export restrictions on advanced chips to China. The firm had earlier announced plans to sell its specially designed H20 chips to Chinese customers, following a partial policy reversal by the U.S. administration. However, Nvidia confirmed it has not yet shipped the chips, as government license reviews continue.

Experts warn that trade limits may help local chipmakers in China grow stronger, which could affect Nvidia’s long-term growth in the country. Even so, industry observers say Nvidia’s continued push into robotics and advanced AI technologies may help it maintain its position as the global leader in AI hardware.