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Nvidia delivered solid results on Wednesday as the $4tn tech giant at the heart of the artificial intelligence boom signalled resilient growth, with markets jittery about whether the momentum around AI can continue.
The company reported revenue of $46.7bn for the quarter to July 28, up 56 per cent year on year and slightly above consensus estimates of $46.5bn, according to Visible Alpha.
Nvidia said it expected $54bn in sales for the current quarter, plus or minus 2 per cent, compared with expectations of $53.8bn.
Its role in designing the advanced chips that are used to develop and run AI models such as ChatGPT has propelled it to become the world’s most valuable group by market capitalisation and made it a bellwether for the AI boom.
Nvidia’s shares are up more than 35 per cent this year. But its stock took a hit last week during a widespread sell-off in companies linked to AI, after a negative report on its practical applications and comments by OpenAI chief executive Sam Altman about investors overhyping the technology.
The shares were down about 1.5 per cent in after-hours trading on Wednesday.
Net income jumped 59 per cent from last year to $26.4bn, against forecasts of $23.5bn. Earnings per share were $1.08, while adjusted gross margin was 72.7 per cent, slightly above consensus estimates of 72.3 per cent.
Nvidia did not give expectations of future revenue from chip sales in China, which have been disrupted by US President Donald Trump’s volatile trade policy towards Beijing.
It said that despite no revenue from China during the quarter due to new US export controls, it had managed to sell $650mn of its China-specific H20 chips to a customer outside of the country.
