Nvidia Breaks Sales Record with Explosive Growth in Artificial Intelligence Market

Nvidia, the world's most valuable company, reported another quarter of sustained sales growth in its financial report on Wednesday, recording $46.7 billion in revenue, an impressive 56% increase compared to the same period last year. This growth was largely driven by the artificial intelligence-dominated data center business, which recorded 56% growth year on year.

Net Profit Soars 59% with AI Boom

The semiconductor giant has also seen its net profit grow substantially since last year. The company reported a net profit of $26.4 billion in the second quarter, a 59% jump compared to the same period last year.

In total, the company earned $41.1 billion in data center sales revenue in the quarter, suggesting that AI companies' demand for cutting-edge GPUs continues to grow exponentially. The company's most advanced generation of chips, Blackwell, accounted for $27 billion of these sales.

CEO Jensen Huang Predicts Trillions in AI Investments

"Blackwell is the AI platform the world has been waiting for," said CEO Jensen Huang in a statement accompanying the release of the results. "The AI race is on, and Blackwell is the platform at its center."

Huang said the company expects to see between $3 and $4 trillion in spending on AI infrastructure by the end of the decade. "$3 to $4 trillion is quite sensible for the next five years," he told an analyst during the earnings call.

Strategic Partnership with OpenAI Highlights Performance

The company was keen to highlight its role in the launch of OpenAI's open source gpt-oss models earlier this month, which involved processing "1.5 million tokens per second on a single Nvidia Blackwell GB200 NVL72 system".

Chinese Market Challenges Impact Sales

The results also revealed Nvidia's ongoing struggle to sell its chips in the Chinese markets. The company reported no sales of its China-focused H20 chip to Chinese customers last quarter. However, Nvidia reported that $650 million in H20 chips were sold to a customer outside China.

Changes in Export Policies Under Trump

The United States has long restricted sales of advanced GPUs to Chinese customers - but the geopolitical situation has changed significantly under President Trump. The company is now allowed to sell chips to China as long as it pays a 15% export tax to the US Treasury, the result of an unconventional deal that legal scholars have described as an unconstitutional abuse of power.

During the earnings call, Nvidia CFO Colette Kress made it clear that the lack of shipments was a result of the uncertainty surrounding the deal, which has not been officially codified into federal regulation. "While some of our China-based customers have received licenses in recent weeks," said Kress, "we have not shipped any H20 devices based on those licenses."

Optimistic projections for the third quarter

Nvidia projects $54 billion in revenue for the third quarter. The company noted that its outlook for the third quarter, which could vary by 2% either way, does not include any H20 shipments to China.

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