Nvidia Reports Record Sales as AI Boom Continues

Nvidia has posted impressive earnings, reporting a record $46.7 billion in revenue for Q2, a 56% increase compared to the previous year. This growth has been driven largely by the company’s AI-focused data center business, which itself saw a 56% year-over-year revenue increase.

In addition to impressive sales, Nvidia's net income surged, rising 59% to $26.4 billion. The company's dominance in AI-driven data center sales is evident, with $41.1 billion in revenue from this sector alone. This demand for cutting-edge GPUs continues to grow, particularly driven by AI companies' need for advanced processing power.

Nvidia’s Blackwell GPUs, the company’s most advanced generation of chips, were responsible for a significant portion of the sales, totaling $27 billion. CEO Jensen Huang highlighted Blackwell’s role, stating, “Blackwell is the AI platform the world has been waiting for,” and emphasized the central role of Blackwell in the ongoing AI race. Huang also projected $3 to $4 trillion in AI infrastructure spending over the next five years.

Nvidia’s role in the launch of OpenAI’s GPT-OSS models earlier this month showcased the immense processing power of Blackwell chips, capable of handling 1.5 million tokens per second on a single Blackwell GB200 NVL72 rack-scale system.

However, Nvidia continues to face challenges with its Chinese market sales. Despite the geopolitical uncertainty surrounding advanced GPU sales to China, Nvidia reported no sales of its H20 chip to Chinese customers in the last quarter. While $650 million in H20 chip sales were made to a customer outside China, the company has faced significant regulatory hurdles.

The U.S. export restrictions on advanced GPUs to China, under President Trump's administration, remain a key obstacle. While Nvidia has been allowed to sell chips to China under a 15% export tax, the situation is still fraught with uncertainty. Nvidia CFO Colette Kress noted that the lack of clarity around this arrangement has hindered their ability to make shipments, despite some China-based customers receiving licenses.

The Chinese government has also officially discouraged the use of Nvidia chips by local businesses, leading to the halt of H20 chip production earlier this month.

Nvidia remains a key player in the AI space, with record earnings and sustained growth in its AI-driven revenue streams.