Nvidia posts record $96.2 billion quarter as data center demand keeps climbing
Revenue more than doubled from a year earlier, extending the chipmaker's streak of beating Wall Street expectations to fifteen straight quarters.
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Nvidia reported record quarterly revenue of $96.2 billion for the three months ended in late July, a 106 percent jump from the same period a year earlier, as demand for the chips underpinning artificial intelligence systems continued to outpace even the company's own aggressive production plans.
The data center segment, which sells the processors used to train and run large AI models, accounted for the bulk of that growth, with revenue in the division rising 117 percent year over year to $89 billion. Overall revenue also climbed 18 percent from the prior quarter, a pace few companies of Nvidia's size have managed to sustain for this long.
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Profitability held up alongside the revenue growth, with the company reporting a gross margin of 75 percent. Chief executive Jensen Huang described the current period of AI infrastructure buildout as reaching a new stage in which the computing capacity being deployed is now generating meaningful revenue for the customers buying it, rather than remaining a purely speculative expense.
It was the fifteenth consecutive quarter in which Nvidia's results topped Wall Street analysts' consensus estimates, a run that has made its earnings report one of the most closely watched events on the corporate calendar for investors trying to gauge the broader health of AI spending.
Chief financial officer Colette Kress told analysts the company expects continued growth into the current quarter, though she cautioned that gross margins are likely to narrow slightly, into the low seventies percentage range, as the cost of memory components used in its newest chips rises.
Shares moved in after-hours trading following the report before settling into a more mixed pattern the next day, as some investors weighed the strong headline numbers against questions about how long the current pace of data center spending by big technology companies can continue.