Nvidia reported a major jump in earnings for its latest quarter, posting a profit of $31.9 billion, up 65% from last year and 245% from two years ago. Revenue rose to $57 billion, beating Wall Street expectations.
The chipmaker, now valued at over $5 trillion, controls about 90% of the market for AI processors. Its performance is seen as a key indicator of the strength of the global tech sector, which is investing heavily in AI data centers.
Despite Nvidia’s strong results, its stock has fallen about 10% in recent weeks amid concerns that tech spending may be outpacing real demand. However, shares rose nearly 5% in after-hours trading following the earnings release.
Nvidia projected $65 billion in revenue for the current quarter—far above analysts’ forecasts—suggesting continued strong AI-related demand. CEO Jensen Huang dismissed concerns about an AI bubble, calling AI “transformational.”
The company’s massive investments in AI start-ups like OpenAI and Anthropic have raised questions about “circular deals,” in which Nvidia invests money that ultimately gets spent on Nvidia hardware. Analysts estimate that such deals could account for 15% of Nvidia’s sales next year. Huang defended the strategy as a way to deepen technical partnerships.
Nvidia is also facing increasing competition from AMD and Qualcomm, which are striking their own AI chip deals. Still, Nvidia expects to reach $500 billion in sales through the end of next year.
The company recently completed a deal to supply up to 150,000 chips to Amazon and Saudi Arabia’s Humain for new data centers in Riyadh, with Saudi demand expected to reach 400,000–600,000 chips over the next three years.
Nvidia’s growth continues despite restrictions preventing it from selling its latest chips in China, the world’s largest semiconductor market. Attempts to lobby U.S. and Chinese leaders have so far failed, leaving the company to negotiate directly with Beijing.
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