Nvidia Q2 net profit jumps 126% to $59.7 billion on AI growth

Nvidia's second-quarter financials reveal a staggering 126% increase in net profit, reaching $59.7 billion, alongside a revenue surge to $96.2 billion. The company's founder and CEO, Jensen Huang, attributed this growth to the unstoppable demand for AI computing power. Nvidia is at the forefront of this AI boom, supplying essential chips and computing systems for training and running large AI language models.

Amazon, Google, Microsoft, and Meta are investing billions in expanding AI data centers, with Nvidia's products playing a crucial role. The chipmaker's third-quarter revenue is expected to exceed $108 billion, slightly above the average analyst forecast. Nvidia remains confident in the AI boom's longevity, with Huang noting that AI has reached its inflection point and is now performing useful work, with demand rising rapidly and physical AI gaining momentum.

Physical AI integrates AI with robotics. The company's Vera Rubin processor architecture, a more powerful successor to the Blackwell architecture, is designed for agentic AI, which can autonomously plan and execute tasks. Nvidia shares experienced a temporary dip in after-hours trading before recovering, closing almost 4% higher at $218.