NVIDIA Reports Record Sales Driven by AI Boom

Nvidia Reports Significant Revenue Growth

Nvidia, currently recognized as the most highly valued company globally, has announced continued sales expansion in its latest quarterly earnings report, released on Wednesday.

The company recorded revenue of $46.7 billion, representing a substantial 56% increase when compared to the corresponding quarter of the previous year.

AI Drives Data Center Revenue

This growth is primarily attributed to the robust performance of its data center business, which is heavily influenced by artificial intelligence. Revenue within this sector experienced a year-over-year increase of 56%.

Nvidia’s net income also demonstrated considerable growth. The company’s net income for the second quarter reached $26.4 billion, a 59% increase compared to the same period last year.

Data Center Sales and Blackwell Chip Performance

Total revenue generated from data center sales amounted to $41.1 billion during the quarter.

This indicates a sustained demand for advanced GPUs from companies focused on AI development.

The company’s newest chip generation, Blackwell, contributed $27 billion to these sales.

CEO Jensen Huang’s Perspective

“Blackwell represents the AI platform that the industry has anticipated,” stated CEO Jensen Huang in a press release accompanying the earnings report.

“The competition in the AI field is intensifying, and Blackwell is positioned as the central platform driving this progress.”

Huang anticipates that total spending on AI infrastructure will reach $3 to $4 trillion by the end of the decade, characterizing this figure as “fairly sensible for the next five years” during a discussion with an analyst.

OpenAI’s gpt-oss Models and Nvidia’s Role

The company highlighted its involvement in the recent launch of OpenAI’s open-source gpt-oss models.

This involved processing an impressive 1.5 million tokens per second utilizing a single Nvidia Blackwell GB200 NVL72 rack-scale system.

Challenges in the Chinese Market

The earnings report also provided insight into Nvidia’s ongoing efforts to market its chips within China.

No sales of the China-specific H20 chip were recorded to Chinese customers in the last quarter.

However, $650 million worth of H20 chips were sold to a customer located outside of China.

US Export Restrictions and the H20 Chip

The United States has historically imposed restrictions on the sale of advanced GPUs to Chinese customers.

The geopolitical landscape has evolved under President Trump, and Nvidia is now authorized to sell chips to China, subject to a 15% export tax payable to the U.S. Treasury.

This arrangement has been criticized by legal experts as a potentially unconstitutional overreach of power.

Uncertainty Surrounding Export Arrangements

During the earnings call, CFO Colette Kress clarified that the absence of shipments was due to ambiguities surrounding this arrangement, which has not yet been formally established as a federal regulation.

“Although a limited number of our Chinese customers have obtained licenses in recent weeks,” Kress explained, “we have not yet shipped any H20 devices based on these licenses.”

Chinese Government Discouragement and Production Halt

The Chinese government has officially advised local businesses against utilizing Nvidia chips.

This has reportedly led to a temporary suspension of H20 chip production earlier this month.

Outlook for the Third Quarter

Nvidia projects revenue of $54 billion for the third quarter.

The company’s forecast for the third quarter, with a potential variance of 2% in either direction, does not currently include any anticipated H20 shipments to China.