Nvidia doubles revenue, forecasts even more AI spending

AI juggernaut Nvidia on Wednesday reported quarterly revenue of $96.2 billion, more than double a year earlier, as the world's most valuable company beat Wall Street expectations and forecast even stronger sales ahead.

Nvidia is considered the bellwether for the AI spending frenzy, with its results largely determined by mega purchases from AI giants such as OpenAI, Anthropic, Meta and Google.

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Revenue for the quarter ending July 26 rose 106 percent from a year earlier and 18 percent from the previous three months, comfortably above the roughly $92 billion analysts had forecast.

Net profit reached $59.7 billion, up 126 percent from a year earlier, though the figure was boosted by $7.8 billion in gains from Nvidia's portfolio of stakes in AI companies.

Nvidia told investors to expect about $108 billion in revenue in the current quarter, well ahead of Wall Street forecasts and a signal that the company sees no near-term slowdown in AI spending.

Nvidia's biggest customers -- Amazon, Microsoft, Alphabet and Meta -- are on track to spend roughly $800 billion on data centers and AI infrastructure this year.

That amount is nearly double last year's total, with analysts expecting industry-wide spending to top $1 trillion.

That historic windfall has increasingly drawn Nvidia into bankrolling AI expansion.

The company has faced increased questions about circular financing through funding its own AI developer clients by helping AI startups pay for Nvidia-based infrastructure.

The company again projected no revenue from sales of AI computing chips in China in its forecast.

Beijing has only recently begun allowing limited quantities of Nvidia's H200 processors into the country, with ByteDance and Tencent reportedly each receiving around 10,000 units in recent weeks -- a fraction of what US export licenses permit.

Growth in the company's share price has trailed other chip companies in recent months and pales in comparison to the stratospheric leaps in 2023 that followed the launch of ChatGPT.

That market surge catapulted the California-based company to become the most valuable publicly traded company in the world, a perch it still holds ahead of iPhone-maker Apple.