Nvidia doubles revenue, forecasts even more AI spending

Nvidia, the world's most valuable company, announced a staggering $96.2 billion in quarterly revenue on Wednesday, more than double the revenue from the same period last year. The tech giant, which powers the AI revolution, surpassed Wall Street's expectations and projected even stronger sales ahead. This revenue surge was largely driven by large-scale purchases from AI industry leaders like OpenAI, Amazon, Microsoft, and xAI.

Nvidia CEO Jensen Huang stated that the AI infrastructure buildout is currently at full force. The company's revenue for the quarter ending July 26 rose by 106% from a year ago and 18% from the previous three months, outpacing the roughly $92 billion forecast by analysts. Net profit soared to $59.7 billion, a 126% increase from a year earlier, although this figure was partly inflated by $7.8 billion in gains from Nvidia's stakes in AI companies.

The company expects to generate around $108 billion in revenue for the current quarter, well above Wall Street's predictions and indicating a continued lack of near-term slowdown in AI spending. Nvidia's biggest customers, including Amazon, Microsoft, Alphabet, and Meta, are set to invest approximately $800 billion on data centers and AI infrastructure this year, nearly double the spending from the previous year.

Analysts predict industry-wide spending will exceed $1 trillion. While Nvidia has invested heavily in AI startups, facing criticism over circular financing, the company's CFO, Colette Kress, defended the practice, arguing that they are investing in "once-in-a-generation companies" during a major computing platform shift. CEO Huang expressed regret that he didn't invest more and sooner.

Despite this impressive performance, Nvidia's share price growth has lagged behind other chip companies in recent months, not reaching the meteoric rise seen in 2023 following the launch of ChatGPT. This surge propelled Nvidia into the most valuable publicly traded company in the world, a position it still holds despite Apple's recent comeback.