Nvidia Corporation reported better-than-expected profits and revenue for the second quarter and stated that sales growth in the third quarter will remain above 50%.
Key figures:
- Earnings per share — $1.05 versus the expected $1.01;
- Revenue — $46.74 billion compared to the forecasted $46.6 billion.
The company plans to achieve $54 billion in the third quarter. This figure does not account for potential chip shipments H20 to China.
The year-on-year growth rate was 56% — marking more than 50% growth for the ninth consecutive quarter. However, the pace is slowing.
Net profit increased by 59% to $26.42 billion.
Nvidia did not sell H20 to China during the reporting period, resulting in a potential loss of $8 billion. However, the company sold processors worth $650 million to a client outside of China.
If the political situation permits, the American chipmaker could earn between $2 billion and $5 billion per quarter from processors intended for the Chinese market, according to the company’s CFO, Colette Kress.
The surge in financial performance is primarily driven by the artificial intelligence boom and the construction of necessary technology data centers. Nvidia sold next-generation Blackwell chips worth $27 billion.
“Blackwell is the AI platform the world has been waiting for. The AI race has begun, and Blackwell is at its center,” said the firm’s CEO, Jensen Huang.
The company plans to invest $3 trillion to $4 trillion in AI infrastructure by the end of the decade.
Nvidia’s shares reacted to the report with a slight decline.
Recently, the company has been focusing on the robotics sector. In August, it launched the new Jetson AGX Thor module for $3499. The firm describes the chip as the “brain of a robot.”
Earlier, Nvidia introduced a set of AI models, libraries, and other infrastructure for robotics developers. One of the key products is Cosmos Reason — a vision-language model with 7 billion parameters and “reasoning” for physical AI applications and bots.