Nvidia's quarterly results beat Wall Street expectations. Net income rose to $59.69 billion, and revenue doubled to $96.22 billion.
The company forecasts about $108 billion in current-quarter revenue.
AI infrastructure spending remains strong, but operating expenses surged 55%.
What happened
Nvidia reported net income of $59.69 billion, or $2.46 per share, for the May-July period. Revenue more than doubled to $96.22 billion, beating analysts' average forecast of $92.27 billion.
Why it matters
The results signal AI infrastructure spending remains strong, with revenue forecast of about $108 billion for the current quarter, implying a roughly 89% increase from last year. However, operating expenses surged 55% to $8.41 billion, and investors worry about a comedown after a three-year boom that saw market value soar to roughly $5.2 trillion.
What to watch
Nvidia's data center segment, which includes AI chips for hyperscalers like Amazon, Meta, and Google, reported revenue of $89 billion, up more than twofold. The company said it's not assuming any data center compute revenue from China in its outlook.
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Nvidia's latest earnings show its high-end AI chips remain a key building block for the industry, with data center revenue reaching $89 billion, up more than twofold. The company's edge computing segment, which brings AI features to devices like computers and robotics, also grew 27% to $7.2 billion. CEO Jensen Huang highlighted that AI has reached its inflection point, saying, 'Now, compute is revenue.'
Despite the rosy outlook, operating expenses rose 55% to $8.41 billion, and the company is not assuming any data center compute revenue from China in its outlook. This suggests potential geopolitical or regulatory headwinds in that market. The forecast of about $108 billion for the current quarter indicates growth is still accelerating, but investors remain cautious about whether AI spending will justify the trillions invested, given the market value has already soared to roughly $5.2 trillion.
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