Nvidia on Wednesday reported blockbuster quarterly results that blew past Wall Street expectations, posting record revenue of $68.1 billion as insatiable demand for its artificial intelligence chips showed no sign of cooling.
The figures — up 73 percent from a year ago and well above the $65.7 billion analysts had forecast — sent a powerful signal that the technology buildout dominated by Nvidia that underpins the global AI boom remains in full swing.
Net income for the quarter more than doubled year-on-year to $42.96 billion; the earnings release sent shares surging five percent in after-hours trading.
Nvidia designs the graphics processing units (GPUs) that have become the backbone of the global artificial intelligence boom.
Founded in 1993 by Jensen Huang, who remains CEO, the Santa Clara, California-based company commands a market capitalization exceeding $4.7 trillion, making it the world’s most valuable publicly traded company.
Combined capital expenditure from the four major AI builders — Google, Amazon, Meta and Microsoft — could approach $700 billion this year as the tech giants race to stay ahead in the crucial technology.
A large share of that spending lands at Nvidia, which remains the dominant supplier of the AI chips and technology used to train and deliver generative AI capability.
Huang said the AI industry had reached a decisive turning point driven by the rise of so-called agentic AI — systems that can take decisions and act autonomously on behalf of humans.
“We have now seen the inflection of agentic AI and the usefulness of agents across the world,” he said, adding that enterprises everywhere were seeing “incredible” demand because of it.
– ‘Gone to AI’ –
He pointed to the rapid adoption of AI coding and productivity tools — including Anthropic’s Claude and OpenAI’s Codex — as evidence that AI was now delivering tangible returns for both customers and cloud providers.
Speaking to analysts, he warned that the traditional software industry was being fundamentally transformed by this adoption, an argument that has seen shares in enterprise software companies spiral lower in recent sessions on Wall Street.
“What used to be software running on computers has now gone into AI,” he said, “and that translates directly to growth, and that translates directly to revenues” for companies deploying AI solutions.
The company’s data center division, which sells the high-powered chips used to train and run AI models, was once again the engine of growth.
