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Nvidia’s revenue nearly doubled from a year ago in the latest show of strength for the chipmaker that has benefited most from the rise of artificial intelligence.
Revenue for the quarter to the end of October was $35.1bn, up 94 per cent from a year ago. This was a slower pace of growth from the previous quarter but still exceeded analysts’ expectations of $33.25bn.
Nvidia’s revenue guidance for the current quarter was $37.5bn, plus or minus 2 per cent, beating consensus expectations of $37bn. Shares were down about 1.8 percent in after-hours before the company’s earnings call.
Data center revenue, which includes Nvidia’s Hopper chips that have powered the first wave of the boom in the AI market, rose 112 percent year over year to $30.8 billion. Big tech companies have poured billions of dollars into data center infrastructure that can train and run the models, with spending expected to increase through 2025.
Analysts are watching closely to see how Nvidia’s new generation of chips, known as Blackwell, launched earlier this year, could affect near-term revenue growth. , and whether the chip is experiencing any technical issues as it is implemented at scale.
According to a recent report by The Information, Blackwell chips are experiencing problems with overheating in servers. The chip was already experiencing production issues earlier this year.
Nvidia Chief Executive Jensen Huang said in a statement that the Blackwell chip, which is now in full production, is seeing “incredible” expectations from customers, compared to its previous generation chip, known as Hopper. Yes, demand is still strong.
The company’s shares have risen more than 200 percent year to date. The race to develop and adopt AI has fueled Nvidia’s impressive growth. With a market value of $3.6tn, it is the world’s most valuable listed company and has had a major impact on the stock market. At the start of the year it was making about a quarter of the gains on the S&P 500.
With expectations sky high around the chipmaker’s quarterly results, investors took it as a measure of the health of the overall tech market, with all major tech companies investing heavily in AI.
Gross margins were 75 percent, in line with consensus estimates. Adjusted net income was $20bn, while earnings per share were $0.78, beating analysts’ expectations.
Citi analysts said the results were better than expected, with demand for Blackwell expected to exceed supply in fiscal 2026.
