Nvidia Achieves Record Sales Amid AI Boom
Nvidia, the world's most valuable company, announced a significant increase in sales, reporting $46.7 billion in revenue for the latest quarter, a 56% rise from the previous year. This growth was primarily driven by its AI-focused data center business, which experienced a 56% year-over-year revenue increase.
The company also reported a substantial rise in net income, reaching $26.4 billion in the second quarter, marking a 59% increase from the same period last year.
Overall, Nvidia generated $41.1 billion in revenue from data center sales during the quarter, indicating a growing demand for advanced GPUs by AI companies. The company's latest generation of chips, Blackwell, contributed $27 billion to these sales.
CEO Jensen Huang stated, "Blackwell is the AI platform the world has been waiting for," emphasizing its central role in the ongoing AI race.
Huang projected that AI infrastructure spending could reach $3 to 4 trillion by the end of the decade, describing this estimate as reasonable for the next five years.
Nvidia highlighted its involvement in the recent launch of OpenAI's open-source gpt-oss models, which processed "1.5 million tokens per second on a single Nvidia Blackwell GB200 NVL72 rack-scale system."
The earnings report also shed light on Nvidia's challenges in selling its chips in the Chinese market. The company reported no sales of its China-focused H20 chip to Chinese customers in the past quarter, although $650 million worth of H20 chips were sold to a customer outside China.
The U.S. has historically restricted sales of advanced GPUs to Chinese customers, but the geopolitical landscape has shifted under President Trump. Nvidia can now sell chips to China, provided it pays a 15% export tax to the U.S. Treasury, a move some legal scholars have criticized as an unconstitutional abuse of power.
Nvidia CFO Colette Kress clarified that the lack of shipments was due to uncertainty surrounding the arrangement, which has not been formalized into federal regulation. "While a select number of our China-based customers have received licenses over the past few weeks," Kress noted, "we have not shipped any H20 devices based on those licenses."
Despite this, the Chinese government has officially discouraged local businesses from using Nvidia chips, leading the company to reportedly halt production of the H20 chip earlier this month.
Nvidia expects $54 billion in revenue for the third quarter, noting that its forecast does not include any H20 shipments to China.