Nvidia Revenue Surges Past $96 Billion, Projects 70% Growth
The AI chip giant reported a more than doubling of quarterly sales, fueled by unprecedented demand in the artificial intelligence sector.
Nvidia announced its quarterly sales have more than doubled to $96.2 billion, a 106 percent increase compared to the same period last year, underscoring the significant impact of the artificial intelligence boom. The company's profits also surged by 126 percent, reaching $59.7 billion.
The surge in revenue was largely driven by its data center segment, which generated $89 billion. Looking ahead, Nvidia anticipates approximately $108 billion in revenue for the current quarter. The company's shares saw a 4.7 percent rise in post-market trading, approaching a previous high.
Nvidia, a key player in the AI revolution through its semiconductor chips, has seen its market value climb to $5.2 trillion, making it the world's most valuable company. This financial performance is closely monitored by global investors as it reflects the ongoing expansion and profit potential of the AI industry, which has propelled U.S. markets into a sustained rally.
Further solidifying its position, Nvidia announced an expansion of its partnership with Amazon Web Services. The collaboration will involve deploying an additional 2 million Nvidia graphics processors across Amazon's global infrastructure in 2027 and 2028.
Jensen Huang, Nvidia's founder and CEO, described the current era as a 'golden age' for AI, noting that demand is accelerating and the technology is becoming increasingly productive and profitable. The company projects fiscal year 2028 revenue to grow by approximately 70 percent.
However, Nvidia indicated that rising memory costs are expected to reduce gross margins from 75 percent to between 71 percent and 72 percent in the upcoming months. Analysts note that while there are valid concerns regarding margins, competition, and customer return on AI investments, the company's valuation appears to already incorporate a degree of skepticism. Despite potential headwinds, analysts remain confident in Nvidia's continued earnings strength and suggest its valuation may warrant a re-rating.
The company's willingness to provide a two-year growth projection of 70 percent signals strong confidence based on exceptional customer demand, according to industry observers.