Nvidia, the world's most valuable company with a $5tn market cap, reported that its quarterly revenue doubled in a year to nearly $100bn. The chipmaker announced on Wednesday that it brought in $96.2bn in revenue for the second quarter, exceeding Wall Street expectations of $92bn. This figure represents a 106% increase compared to the same period last year.
Jensen Huang, Nvidia's founder and CEO, stated that demand is accelerating as the AI industry has reached a "golden age." He added that "AI has reached its inflection point. It's doing useful work. Its tokens are productive and profitable. Now, compute is revenue."
Datacenter revenue, a key metric, saw an increase of 117% year-over-year, reaching $89bn in the second quarter. The company also posted earnings per share of $2.22, surpassing Wall Street's adjusted earnings expectations of $2.09. Nvidia anticipates its revenue will continue to grow to $108bn by the end of the third quarter, which is higher than analysts had predicted.
Despite the strong financial results, Nvidia's stock dipped in extended trading. This comes as scrutiny of AI spending and its financing intensifies, with questions about the value of billions invested by AI companies. Emarketer analyst Jacob Bourne noted that "Even extraordinary growth can fail to satisfy investors as scrutiny of AI spending and its financing intensifies."