Nvidia Reports Record Revenue Surge as Global AI Race Accelerates

Washington: US chip giant Nvidia has reported another massive increase in revenue, highlighting the continued global race to build artificial intelligence (AI) systems and infrastructure.

The company said its revenue reached $96 billion in the second quarter, more than double the figure recorded during the same period last year. Nvidia also expects revenue of around $108 billion in the next quarter.

Nvidia CEO Jensen Huang said AI has reached an important turning point, with the infrastructure required to power the technology being built at full speed.

The results exceeded Wall Street expectations, sending Nvidia shares 4.7% higher in after-hours trading.

The company’s data centre business generated $89 billion in revenue during the quarter, marking a 117% increase from a year earlier. The figures underline Nvidia’s growing importance to the global AI industry.

Major technology companies including Amazon, Meta, Google and Microsoft rely heavily on Nvidia’s processors to develop and operate AI systems and infrastructure.

Financial analysts described the results as another strong performance for Nvidia, with both revenue and earnings exceeding forecasts. Analysts also said the company’s outlook suggests its growth momentum is likely to continue.

Nvidia has also expanded its role in the AI ecosystem by providing funding to companies that depend on its technology, including OpenAI, Anthropic and SpaceX.

The company’s processors are at the centre of the AI boom, powering data centres used to train and run advanced AI models. Nvidia has consequently become the world’s most valuable company, with a market capitalization of more than $5 trillion.

Although competition is emerging from companies developing their own AI processors and lower-cost Chinese suppliers, Nvidia’s latest results indicate that demand for its technology remains extremely strong.