Strong AI chip demand fuels Nvidia's Q2 results well beyond Wall Street's expectations
-
SECTIONS
TOP STORIES
- Catastrophic floods kill over 350 in Nepal and Tibet, with more than 1,300 missing
- Iran warns of military ship ban in Hormuz under potential deal with Oman, and other Middle East news
- The Kremlin says the CIA director held talks in Moscow with his intelligence counterparts
Newsletters
The Afternoon Wire
Our personalization engine sends you what you may have missed throughout the day.
The Morning Wire
Our flagship newsletter breaks down the biggest headlines of the day.
See All Newsletters
-
SECTIONS
TOP STORIES
- Testimony concludes in Lindsay Clancy’s murder trial. Jury to hear closing arguments Thursday
- Father says college student was killed by police in Pennsylvania after he went to wrong house
Newsletters
The Afternoon Wire
Our personalization engine sends you what you may have missed throughout the day.
See All Newsletters
AP QUIZZES
Weekly News Quiz
-
SECTIONS
TOP STORIES
- Judge removes one hurdle for Trump mail voting order as states file new challenge before midterms
- How the Trump administration is expanding its immigration crackdown to people entering legally
- US goals have shifted after 6 months of Iran war. The Strait of Hormuz is now a top concern
Newsletters
Ground Game
Your guide to the biggest stories in politics, policy and U.S. elections.
See All Newsletters
-
SECTIONS
TOP STORIES
- Dick's Sporting Goods and Golf Galaxy remove Good Good Golf items after backlash to video
- NFL ends the Pro Bowl game, but players will still be honored as Pro Bowlers
- NFL owners unanimously approve the sale of the Seahawks to Vinod Khosla and his family
Newsletters
AP Top 25 Poll Alerts
Get email alerts for every college football Top 25 Poll release.
The Sports Wire
Get AP’s in-depth sports reporting tailored to your interests.
See All Newsletters
-
SECTIONS
TOP STORIES
- Tim Curry, iconic character actor and 'Rocky Horror Picture Show' star, dies at 80
- Dolly Parton, music star, actor and beloved figure who spanned generations, dies at 80 of cancer
- Yayoi Kusama, who splashed polka dots across the art world, dies at 97 in Tokyo
Newsletters
AP Entertainment Wire
AP’s entertainment, media, fashion and culture coverage, personalized to your interests.
See All Newsletters
-
SECTIONS
TOP STORIES
- Meta reaches landmark $18 billion settlement with states in trial over teen social media addiction
- Dolly Parton's philanthropy was based on 'her belief in the goodness of people'
- Key inflation gauge remains elevated during Iran conflict and ongoing US trade fights
-
-
-
-
-
TOP STORIES
- FACT FOCUS: Massive blackouts are unlikely if Canada stops exporting electricity to the US
- George Floyd’s autopsy report is not new, does not say he died of an overdose
- False claim of human meat in McDonald’s factories stems from old hoax
- FACT FOCUS: Census Bureau report does not prove Trump's claim about noncitizen voting in 2020
- Video of Kamala Harris saying ‘today is today’ was altered
- FACT FOCUS: The Trump administration is falsely claiming Jimmy Carter was against mail-in voting
-
TOP STORIES
- Capybaras keep their chill while crashing Brazilian legislature
- A driver faces up to $110,000 in fines for speeding on a Swiss street. But he can afford it
- A humpback whale briefly swallows kayaker in Chilean Patagonia — and it's all captured on camera
- Ghana's fantasy coffins are a colorful celebration of life and legacy
- Why a Minneapolis neighborhood sharpens a giant pencil every year
- Viral phenomenon in Argentina has young people identifying themselves as animals
-
SECTIONS
TOP STORIES
- How to reset your child's sleep schedule for back-to-school season
- Being a night owl may not be great for your heart but you can do something about it
- Challenging your brain helps keep it healthy. Here's how to do it
-
SECTIONS
TOP STORIES
- One photo shows the human and environmental dimensions of artisanal mining in Congo
- AP Top Photos of the Month, September 2024
- 'Why? Why? Why?' Ukraine's Mariupol descends into despair
Newsletters
The World in Pictures
Get special access to AP's most compelling images from our global team of photojournalists.
See All Newsletters
-
-
SECTIONS
Indigenous peoples and climate
TOP STORIES
- Floods caused by a glacial collapse kill at least 160 people on Nepal-China border, hundreds missing
- Invasive green crabs are bad for the environment, so New Englanders are starting to eat more of them
- Army to spend $2B to build nuclear microreactors at 5 bases as US seeks to ramp up nuclear power
-
TOP STORIES
- FDA approves landmark pancreatic cancer drug that's shown to improve survival
- Pennsylvania reports first 2 measles deaths in the US this year, both people unvaccinated
- How to reset your child's sleep schedule for back-to-school season
- Florida, hard-hit by Obamacare drop-off, feels the squeeze of rising healthcare costs
- Being a night owl may not be great for your heart but you can do something about it
- Challenging your brain helps keep it healthy. Here's how to do it
-
SECTIONS
TOP STORIES
- In their own words: What young people wish they'd known about social media
- His son died after a sextortion scheme. He's among many parents celebrating the rulings against Meta
- Social media can be addictive even for adults, but there are ways to cut back
-
SECTIONS
TOP STORIES
- Sippin' (and chuggin') through the years with a party mainstay — the red Solo cup
- These plants add color to gardens and pots when summer flowers fade
- Read our big scoop: Ice-cream cones, the ingenious invention of American immigrants
-
TOP STORIES
- In Dolly Parton’s theology, God and acceptance shared the same stage
- What to know about Mount Kailash, a sacred site for pilgrims missing after floods in Nepal and Tibet
- For over 100 years, travelers have checked into US motel rooms and found the Gideon Bible
Newsletters
World of Faith
Comprehensive global coverage of how religion shapes our world.
See All Newsletters
-
SECTIONS
TOP STORIES
- Argentina intenta evitar escalada diplomática con Chile por polémica sobre Estrecho de Magallanes
- USS Abraham Lincoln parará en Tailandia de regreso a EEUU tras largo despliegue en Oriente Medio
- Trump dice que EEUU no necesita a Canadá. La economía dice lo contrario
-
-
-
-
-
-
-
- Iran war
- Español
- China
- Europe
- Africa
-
- Weather
- Abortion
- LGBTQ+
-
- Congress
-
- NFL
- MLB
- NBA
- WNBA
- Soccer
- Golf
-
- Movies
- Fashion
- Music
- Books
-
- Tariffs
-
- Space
- Animals
- Climate
- Medicine
-
-
-
-
-
-
- Trending
- At home
-
-
-
- Indigenous peoples and climate
-
-
-
- Fashion
- Homes
- Travel
- Pets
-
-
- Deportes
-
-
-
-
-
MORE
-
- Iran war
- Español
- China
- Europe
- Africa
-
- Weather
- Abortion
- LGBTQ+
-
- Congress
-
- NFL
- MLB
- NBA
- WNBA
- Soccer
- Golf
-
- Movies
- Fashion
- Music
- Books
-
- Tariffs
-
- Space
- Animals
- Climate
- Medicine
-
-
-
-
-
-
- Trending
- At home
-
-
-
- Indigenous peoples and climate
-
-
-
- Fashion
- Homes
- Travel
- Pets
-
-
- Deportes
-
-
-
-
-
Sign in
-
SECTIONS
TOP STORIES
- Catastrophic floods kill over 350 in Nepal and Tibet, with more than 1,300 missing
- Iran warns of military ship ban in Hormuz under potential deal with Oman, and other Middle East news
- The Kremlin says the CIA director held talks in Moscow with his intelligence counterparts
Newsletters
The Afternoon Wire
Our personalization engine sends you what you may have missed throughout the day.
The Morning Wire
Our flagship newsletter breaks down the biggest headlines of the day.
See All Newsletters
-
SECTIONS
TOP STORIES
- Testimony concludes in Lindsay Clancy’s murder trial. Jury to hear closing arguments Thursday
- Father says college student was killed by police in Pennsylvania after he went to wrong house
Newsletters
The Afternoon Wire
Our personalization engine sends you what you may have missed throughout the day.
See All Newsletters
AP QUIZZES
Weekly News Quiz
-
SECTIONS
TOP STORIES
- Judge removes one hurdle for Trump mail voting order as states file new challenge before midterms
- How the Trump administration is expanding its immigration crackdown to people entering legally
- US goals have shifted after 6 months of Iran war. The Strait of Hormuz is now a top concern
Newsletters
Ground Game
Your guide to the biggest stories in politics, policy and U.S. elections.
See All Newsletters
-
SECTIONS
TOP STORIES
- Dick's Sporting Goods and Golf Galaxy remove Good Good Golf items after backlash to video
- NFL ends the Pro Bowl game, but players will still be honored as Pro Bowlers
- NFL owners unanimously approve the sale of the Seahawks to Vinod Khosla and his family
Newsletters
AP Top 25 Poll Alerts
Get email alerts for every college football Top 25 Poll release.
The Sports Wire
Get AP’s in-depth sports reporting tailored to your interests.
See All Newsletters
-
SECTIONS
TOP STORIES
- Tim Curry, iconic character actor and 'Rocky Horror Picture Show' star, dies at 80
- Dolly Parton, music star, actor and beloved figure who spanned generations, dies at 80 of cancer
- Yayoi Kusama, who splashed polka dots across the art world, dies at 97 in Tokyo
Newsletters
AP Entertainment Wire
AP’s entertainment, media, fashion and culture coverage, personalized to your interests.
See All Newsletters
-
SECTIONS
TOP STORIES
- Meta reaches landmark $18 billion settlement with states in trial over teen social media addiction
- Dolly Parton's philanthropy was based on 'her belief in the goodness of people'
- Key inflation gauge remains elevated during Iran conflict and ongoing US trade fights
-
-
-
-
-
TOP STORIES
- FACT FOCUS: Massive blackouts are unlikely if Canada stops exporting electricity to the US
- George Floyd’s autopsy report is not new, does not say he died of an overdose
- False claim of human meat in McDonald’s factories stems from old hoax
- FACT FOCUS: Census Bureau report does not prove Trump's claim about noncitizen voting in 2020
- Video of Kamala Harris saying ‘today is today’ was altered
- FACT FOCUS: The Trump administration is falsely claiming Jimmy Carter was against mail-in voting
-
TOP STORIES
- Capybaras keep their chill while crashing Brazilian legislature
- A driver faces up to $110,000 in fines for speeding on a Swiss street. But he can afford it
- A humpback whale briefly swallows kayaker in Chilean Patagonia — and it's all captured on camera
- Ghana's fantasy coffins are a colorful celebration of life and legacy
- Why a Minneapolis neighborhood sharpens a giant pencil every year
- Viral phenomenon in Argentina has young people identifying themselves as animals
-
SECTIONS
TOP STORIES
- How to reset your child's sleep schedule for back-to-school season
- Being a night owl may not be great for your heart but you can do something about it
- Challenging your brain helps keep it healthy. Here's how to do it
-
SECTIONS
TOP STORIES
- One photo shows the human and environmental dimensions of artisanal mining in Congo
- AP Top Photos of the Month, September 2024
- 'Why? Why? Why?' Ukraine's Mariupol descends into despair
Newsletters
The World in Pictures
Get special access to AP's most compelling images from our global team of photojournalists.
See All Newsletters
-
-
SECTIONS
Indigenous peoples and climate
TOP STORIES
- Floods caused by a glacial collapse kill at least 160 people on Nepal-China border, hundreds missing
- Invasive green crabs are bad for the environment, so New Englanders are starting to eat more of them
- Army to spend $2B to build nuclear microreactors at 5 bases as US seeks to ramp up nuclear power
-
TOP STORIES
- FDA approves landmark pancreatic cancer drug that's shown to improve survival
- Pennsylvania reports first 2 measles deaths in the US this year, both people unvaccinated
- How to reset your child's sleep schedule for back-to-school season
- Florida, hard-hit by Obamacare drop-off, feels the squeeze of rising healthcare costs
- Being a night owl may not be great for your heart but you can do something about it
- Challenging your brain helps keep it healthy. Here's how to do it
-
SECTIONS
TOP STORIES
- In their own words: What young people wish they'd known about social media
- His son died after a sextortion scheme. He's among many parents celebrating the rulings against Meta
- Social media can be addictive even for adults, but there are ways to cut back
-
SECTIONS
TOP STORIES
- Sippin' (and chuggin') through the years with a party mainstay — the red Solo cup
- These plants add color to gardens and pots when summer flowers fade
- Read our big scoop: Ice-cream cones, the ingenious invention of American immigrants
-
TOP STORIES
- In Dolly Parton’s theology, God and acceptance shared the same stage
- What to know about Mount Kailash, a sacred site for pilgrims missing after floods in Nepal and Tibet
- For over 100 years, travelers have checked into US motel rooms and found the Gideon Bible
Newsletters
World of Faith
Comprehensive global coverage of how religion shapes our world.
See All Newsletters
-
SECTIONS
TOP STORIES
- Argentina intenta evitar escalada diplomática con Chile por polémica sobre Estrecho de Magallanes
- USS Abraham Lincoln parará en Tailandia de regreso a EEUU tras largo despliegue en Oriente Medio
- Trump dice que EEUU no necesita a Canadá. La economía dice lo contrario
-
-
-
-
-
-
-
- Iran war
- Español
- China
- Europe
- Africa
-
- Weather
- Abortion
- LGBTQ+
-
- Congress
-
- NFL
- MLB
- NBA
- WNBA
- Soccer
- Golf
-
- Movies
- Fashion
- Music
- Books
-
- Tariffs
-
- Space
- Animals
- Climate
- Medicine
-
-
-
-
-
-
- Trending
- At home
-
-
-
- Indigenous peoples and climate
-
-
-
- Fashion
- Homes
- Travel
- Pets
-
-
- Deportes
-
-
-
-
-
MORE
-
- Iran war
- Español
- China
- Europe
- Africa
-
- Weather
- Abortion
- LGBTQ+
-
- Congress
-
- NFL
- MLB
- NBA
- WNBA
- Soccer
- Golf
-
- Movies
- Fashion
- Music
- Books
-
- Tariffs
-
- Space
- Animals
- Climate
- Medicine
-
-
-
-
-
-
- Trending
- At home
-
-
-
- Indigenous peoples and climate
-
-
-
- Fashion
- Homes
- Travel
- Pets
-
-
- Deportes
-
-
-
-
-
Sign in
Strong AI chip demand fuels Nvidia’s Q2 results well beyond Wall Street’s expectations
By ALEX VEIGA
Updated [hour]:[minute] [AMPM] [timezone], [monthFull] [day], [year]
Share
-
-
Copy
Link copied
-
-
-
-
-
-
-
-
[Reddit](https://www.reddit.com/submit?url=https%3A%2F%2Fapnews.com%2Farticle%2Fnvidia-artificial-intelligence-earnings-dc8d556e709b50915cca9217a60b1991%3Futm_source%3Dreddit%26utm_medium%3Dshare&title=Reddit Share)
Nvidia’s latest quarterly results once again blew past Wall Street’s expectations as revenue for the computer chip company’s high-end artificial intelligence chips soared, the latest sign that AI infrastructure spending remains strong.
The company reported on Wednesday net income of $59.69 billion, or $2.46 per share, for the May-July period. That compares to net income of $26.42 billion, or $1.08 per share, in the same quarter last year.
Excluding certain items, earnings were $2.22 per share, well above the $2.09 per share consensus forecast by Wall Street analysts, according to FactSet.
Revenue more than doubled from a year earlier to $96.22 billion, surpassing analysts’ average forecast of $92.27 billion.
“AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue,” said CEO Jensen Huang in a statement.
The Santa Clara, California, company’s results have regularly cleared the bar set by analysts in the past three years, often by a wide margin, since Nvidia’s high-end chips emerged as AI’s best building blocks.
Along with higher profit and revenue, however, Nvidia’s operating expenses surged 55% to $8.41 billion.
For the current quarter, Nvidia forecast revenue of about $108 billion. Analysts are forecasting $104.86 billion.
Related Stories
Tech stocks lead Wall Street after Nvidia, Salesforce and others report big profits
3 MIN READ
Falling oil prices help calm the stock and bond markets
3 MIN READ
Taiwan charges 9 over illegal AI server exports to China, including Nvidia and Super Micro staff
2 MIN READ
If Nvidia hits its revenue target for the August-October period, it will translate into a roughly 89% increase from last year — an indication that Nvidia’s phenomenal growth rate is still accelerating. The company said it’s not assuming any data center compute revenue from China in its outlook.
Nvidia expects to grow its revenue in its fiscal year ending January 2028 by about 70%, citing surging demand for its AI-powering chips. In fact, the company’s growth outlook would be closer to double, based on its customers’ own forecasts, if it weren’t for challenges in sourcing enough supplies to meet the chip production demand, noted CFO Colette Kress in a call with Wall Street analysts.
Huang also emphasized the supply limitations the company is grappling with.
“Our entire supply chain is challenged,” he told analysts. “At this point we have supply for 70%. ... Our demand is much higher than that.”
Sign up for Morning Wire: Our flagship newsletter breaks down the biggest headlines of the day.
Nvidia’s data center segment, which includes its AI data centers and factories business, as well as chip demand from hyperscalers — operators of huge cloud-computing data centers such as Amazon, Meta and Google — reported revenue of $89 billion, up more than twofold from a year earlier.
Capital spending by the top five hyperscalers is expected to reach nearly $800 billion this year and $1.3 trillion in 2027, Kress noted.
On Wednesday, Nvidia and Amazon Web Services announced a plan to deploy 2 million additional Nvidia graphic processing units, and will incorporate Nvidia chips to power its fleet of warehouse robots.
Kress also said the company expects that its computer processing unit revenue will more than double in fiscal 2028, “positioning us as one of the world’s leading server CPU suppliers.”
Nvidia’s shares rose 4.1% in after-hours trading following the earnings call. The stock ended the regular trading session 1.6% lower and is up 12.4% so far this year.
The company’s edge computing segment, which includes chips bringing AI-powered features to computers, game consoles and robotics, among others, posted revenue of $7.2 billion, up 27% from the same period last year.
Despite the stellar results and still-rosy outlook, many investors worry about a jarring comedown after a three-year boom that has seen Nvidia’s market value soar from $400 billion at the end of 2022 to roughly $5.2 trillion now.
While AI has powered stock market gains and U.S. economic growth in recent years, there’s been growing skepticism about whether AI will justify the trillions of dollars that are being spent to develop the technology.
The AI industry is also increasingly facing pushback amid objections to the expansion in data centers and fears that the speed with which AI is being adopted could lead to widespread job losses for many Americans.