Nvidia posts record $30B earnings, defying Wall Street expectations

Nvidia, one of the world’s most valuable publicly traded companies, has set another record-breaking quarter as it published its latest earnings report.

The chipmaker continued to defy Wall Street’s expectations, recording $30.04 billion in revenue over the past three months. This was a 122 per cent increase in comparison to the year before, showing that artificial intelligence investment mania shows no signs of cooling. According to FactSet, analysts had originally anticipated $0.64 earnings per share and $28.6 billion in sales.

During the earnings call, founder and CEO Jensen Huang expressed his expectation for Nvidia to ship “a lot more” chips and hardware next year than the company has in its entire 31-year history.

In relation to its GPUs, Huang said: “Hopper demand remains strong, and the anticipation for Blackwell is incredible.

“Blackwell samples are shipping to our partners and customers. Spectrum-X Ethernet for AI and NVIDIA AI Enterprise software are two new product categories achieving significant scale, demonstrating that NVIDIA is a full-stack and data center-scale platform.

He added: “Across the entire stack and ecosystem, we are helping frontier model makers to consumer internet services, and now enterprises. Generative AI will revolutionize every industry.”

The firm expects to sell “several billion’” dollars of these chips in the fourth quarter.

Nvidia shares still fall

Despite the second-quarter revenue rise, shares in the chip designer fell after investors were spooked by signs of slowing growth and production issues.

Investors appeared to be concerned about signs of a slowdown around its Blackwell AI chip. The stock fell as much as 7 percent in pre-market trading, before rising to a 3 percent fall. Last month, SK Group CEO and chairman of the Korea Chamber of Commerce and Industry (KCCI), Chey Tae-Won sounded a reminder of the precarious nature of supply and demand. “Without making money, the AI boom could vanish, just as the gold rush disappeared,” said Chey.

It was recently estimated that the tech industry needs to rake in $600 billion annually to break even on AI investment.

The Silicon Valley company currently has a market value of $3.1 trillion.

Featured image: Ideogram

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