Nvidia’s Q2 revenue tops $96.2 billion on strong AI chip demand

https://www.fastcompany.com/section/nvidia">Nvidia‘s latest quarterly results once again blew past Wall Street’s expectations as revenue for the computer chip company’s high-end https://www.fastcompany.com/section/artificial-intelligence" title="AI">artificial intelligence chips soared, the latest sign that AI infrastructure spending remains strong.

The company reported on Wednesday net income of $59.69 billion, or $2.46 per share, for the May-July period.

That compares to net income of $26.42 billion, or $1.08 per share, in the same quarter last year.

Excluding certain items, earnings were $2.22 per share, well above the $2.09 per share consensus forecast by Wall Street analysts, according to FactSet.

Revenue more than doubled from a year earlier to $96.22 billion, surpassing analysts’ average forecast of $92.27 billion.

The Santa Clara, California, company’s results have regularly cleared the bar set by analysts in the past three years, often by a wide margin, since Nvidia’s high-end chips emerged as AI’s best building blocks.

Along with higher profit and revenue, however, Nvidia’s operating expenses surged 55% to $8.41 billion.

For the current quarter, Nvidia forecast revenue of about $108 billion.

Analysts are forecasting $104.86 billion.

If Nvidia hits its revenue target for the August-October period, it will translate into a roughly 89% increase from last year — an indication that Nvidia’s phenomenal growth rate is still accelerating.

Nvidia’s shares fell 1.8% in after-hours trading shortly after it released its latest results.

The stock ended the regular trading session 1.6% lower and is up 12.4% so far this year.

—Alex Veiga, AP business writer