Business 3 min read By Bethany Hadley
Nvidia doubles quarterly revenue to $96.2bn as AI chip demand accelerates
Nvidia reported second-quarter revenue of $96.2 billion, up 106% year-over-year, beating analyst estimates. The company forecast current-quarter sales above expectations, with CEO Jensen Huang saying AI demand is accelerating.
Nvidia has reported second-quarter revenue of $96.2 billion, more than doubling its sales from a year earlier and beating analyst expectations, as demand for its artificial intelligence chips continues to surge. The figure, for the three months ended July 26, represents a 106% increase year-over-year and an 18% rise from the previous quarter, comfortably exceeding the $92.2 billion that analysts had forecast.
The company also guided to revenue of approximately $91 billion for the current quarter, plus or minus 2%, outpacing the average analyst expectation of $103.9 billion. In a statement accompanying the results, founder and chief executive Jensen Huang said the company was benefiting from a structural shift in how computing power is consumed. «AI has reached its inflection point. It's doing useful work. Its tokens are productive and profitable. Now, compute is revenue,» he said. «And demand is accelerating.»
The data center segment, which accounts for the overwhelming majority of Nvidia's AI business, generated $89 billion in revenue during the quarter, compared with analyst estimates of $85.7 billion. That compares with $75.2 billion in the previous quarter and $39.1 billion in the same period last year, representing a 92% year-over-year increase for the segment. Within data centers, Nvidia reported $48.7 billion in hyperscale revenue and $40.3 billion from AI clouds, industrial, and enterprise customers, a breakdown the company adopted to distinguish large cloud providers from AI-native clouds, sovereign AI projects, and on-premises enterprise deployments.
On a non-GAAP basis, Nvidia reported earnings of $2.22 per diluted share, ahead of analyst expectations of between $2.06 and $2.09. In the previous quarter, the company earned $1.87 per share on a non-GAAP basis and $2.39 on a GAAP basis. The company noted that it has begun including stock-based compensation in its non-GAAP results, which makes direct comparisons with earlier fiscal years less straightforward.
Despite the strong figures, shares were flat in after-hours trading following a 1.6% decline during the regular session. The muted reaction reflects the high bar Nvidia now faces after a prolonged period of exceptional growth, with investors closely watching whether the company can sustain its pace of expansion as competition intensifies and customers reassess their AI infrastructure spending.
The results underline the central role Nvidia plays in the current AI investment cycle, with major cloud providers and enterprise buyers committing substantial capital to the company's graphics processing units. The company's guidance for the current quarter suggests it expects demand to remain robust, even as questions persist about the durability of the AI spending boom and the potential for supply constraints to limit growth.
