Nvidia posts US$46.7 billion revenue and 59% profit jump but warns China chip limits weigh on outlook
Nvidia’s multitrillion-dollar forecast for artificial intelligence infrastructure spending underscored its latest earnings, even as investors sent shares lower on weaker-than-expected data centre revenue.
According to CNBC, finance chief Colette Kress told analysts that Nvidia expects between US$3tn and US$4tn in AI infrastructure investment globally by the end of the decade.
The company said its second-quarter results confirm its data centre business remains at the core of the global AI buildout.
Nvidia reported adjusted earnings per share of US$1.05, above estimates of US$1.01, with revenue of US$46.74bn compared with expectations of US$46.06bn, as reported by LSEG and cited by CNBC.
Net income rose 59 percent to US$26.42bn from US$16.6bn a year earlier.
Overall revenue increased 56 percent from US$30.04bn. Nvidia said revenue has now topped 50 percent growth for nine straight quarters, though this was the slowest pace since mid-2023.
The Wall Street Journal reported that alongside its results, Nvidia announced a US$60bn stock buyback.
Still, its shares fell about 3 percent in after-hours trading after the company’s data centre revenue came in slightly below expectations. Revenue in the segment grew 56 percent year-over-year to US$41.1bn, short of StreetAccount’s US$41.34bn estimate.
Kress said US$33.8bn of those sales were for GPU chips, which slipped 1 percent from the previous quarter, while networking revenue nearly doubled to US$7.3bn.
Nvidia said it expects revenue of US$54bn for the third quarter, plus or minus 2 percent, compared with analyst forecasts of US$53.1bn, as per CNBC.
The company said this outlook does not assume any shipments of its H20 chips to China.
CNN reported that no H20 chips were sold to China during the quarter, though Nvidia released US$180m in reserved inventory to a customer outside the country.
Earlier this year, the chipmaker said the restrictions cost it US$4.5bn in writedowns and could have added US$8bn to quarterly sales.
Kress told analysts Nvidia could ship US$2bn to US$5bn in H20 revenue this quarter if geopolitical conditions allow.
Despite those challenges, Nvidia shares have risen more than 30 percent this year. In July, the company became the world’s first public firm valued at US$4tn, CNN reported.
Analysts continue to view Nvidia as a bellwether for AI-driven market growth.
