Nvidia revenue nearly doubles as AI chip demand remains strong

World leader in artificial intelligence computing Nvidia's revenue almost doubled year-on-year, marking a strong performance for the chipmaker, which has become one of the largest beneficiaries of the artificial intelligence boom.

For the quarter ending in October, Nvidia reported revenue of $35.1 billion, a 94 per cent increase compared to the same period last year. Although this growth rate was slower than the previous quarter, it still surpassed analysts' expectations of $33.25 billion, Caliber.Az reports per foreign media.

Nvidia’s revenue guidance for the current quarter was $37.5 billion, with a 2 per cent margin of error, aligning with consensus estimates of $37 billion. However, shares fell by about 1.8 per cent in after-hours trading ahead of the earnings call.

Data center revenue, which includes Nvidia's Hopper chips powering the first wave of the AI boom, surged 112 per cent year-on-year to $30.8 billion. Major tech companies have heavily invested in data center infrastructure to train and deploy AI models, with this spending expected to continue through 2025.

Analysts have been particularly interested in how Nvidia's new Blackwell chips, launched earlier this year, might influence short-term revenue growth and whether there are any technical issues as they are scaled. A recent report from The Information suggested that Blackwell chips have faced overheating issues in servers, in addition to production problems earlier in the year.

Nvidia CEO Jensen Huang stated that Blackwell chips, now in full production, were receiving “incredible” customer demand, with the previous Hopper chip still in high demand.

Shares of Nvidia have risen over 200 per cent year-to-date, driven by the surge in AI development and adoption. With a market value of $3.6 trillion, Nvidia has become the world’s most valuable publicly traded company, significantly influencing the stock market. Earlier in the year, it was responsible for approximately a quarter of the gains in the S&P 500.

Expectations for Nvidia’s quarterly results were exceptionally high, with investors viewing the performance as a barometer for the overall tech sector, as major tech companies make large investments in AI. Gross margins stood at 75 per cent, in line with consensus, while adjusted net income was $20 billion, with earnings per share of $0.78, exceeding analysts' forecasts.

Citi analysts noted that the results were better than anticipated, with demand for the Blackwell chip expected to outpace supply well into the 2026 fiscal year.

By Vafa Guliyeva