Strong AI chip demand fuels Nvidia's Q2 results well beyond Wall Street's expectations

Nvidia reported strong financial results for the second quarter of their fiscal year, exceeding Wall Street's expectations with a net income of $59.69 billion or $2.46 per share, up from $26.42 billion in the same period last year. Revenue more than doubled to $96.22 billion, surpassing analysts' average forecast of $92.27 billion.

CEO Jensen Huang stated that AI has reached an inflection point, generating productive and profitable compute. However, operating expenses surged 55% to $8.41 billion. Nvidia anticipates a 70% increase in revenue for its fiscal year ending January 2028, but faces challenges with supply limitations. The data center segment, encompassing AI data centers and factories, along with chip demand from hyperscalers, reported revenue of $89 billion, more than doubling from the previous year.

Nvidia's shares rose 4.1% in after-hours trading following the earnings call, and the stock ended the regular trading session 1.6% lower, up 12.4% so far this year.