Nvidia revenue doubles on continued AI demand

Nvidia just posted another outsized quarter, and the message from Silicon Valley is hard to miss: the AI buildout is still eating money at a furious pace. The chipmaker said Wednesday it brought in $96bn in revenue in the second quarter, more than twice what it made a year earlier. It expects $108bn in the next quarter.

CEO Jensen Huang called AI’s “inflection point” in prepared remarks, saying the infrastructure push is going “at full steam.” Wall Street had been expecting less, so the results lifted Nvidia shares about 4% in after-hours trading.

The real eye-opener was the data centre business. That unit alone generated $89bn last quarter, up 117% from a year ago. That is the part of Nvidia that sits under almost every big AI effort now, because Amazon, Meta, Google and Microsoft all use its chips to build AI tools and infrastructure.

Analysts took the numbers as proof that demand has not cooled. Matt Britzman at Hargreaves Lansdown called it another monster set of results, and said Nvidia’s guidance points to revenue comfortably above $110bn. The company’s role has also grown beyond selling processors: it has been putting money into firms such as OpenAI, Anthropic and SpaceX to help keep the expensive AI buildout going.

For now, the competition is not biting hard enough to slow it down. There are rivals from customers making their own processors and from cheaper suppliers in China, but Nvidia’s latest figures suggest those pressures are still limited. That matters well beyond one company: with around 40% of the US stock market concentrated in ten AI-heavy companies, Nvidia’s numbers now ripple far outside Silicon Valley.