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Nvidia’s revenues soared in the quarter to the end of January as demand for its artificial intelligence-focused chips boomed.
The company said its sales increased 78 per cent year over year to $39.3bn, above estimates in a Bloomberg survey of $38.3bn. The group expects to post revenue of $43bn for the current quarter, plus or minus 2 per cent, roughly in line with Wall Street expectations.
Nvidia had been among the top performing stocks on Wall Street over the past two years, helping to pull the entire market higher, as investors have bet it would be one of the beneficiaries of the rapid growth of AI.
But the shares tumbled earlier this year after Chinese AI start-up DeepSeek claimed it made several breakthroughs in performing complex tasks using less advanced chips than rivals like US-based OpenAI.
Chief executive Jensen Huang on Wednesday shrugged off those concerns, saying in a statement that there was “amazing” demand for Nvidia’s latest-generation Blackwell chips. Data centre revenues nearly doubled in the January quarter as Big Tech companies rapidly built out AI offerings.
Still, the Blackwell rollout hit some initial snags, with production issues and reports of some iterations of the chip overheating in servers.
Analysts on Wednesday were looking for reassurance that the transition from the previous chip architecture was proceeding smoothly, and that demand for Blackwell would continue to outstrip supply this year.
Net income was $22.1bn, up 80 per cent from the same quarter in the year prior. Gross margins, however, declined to 73 per cent from 76 per cent.
Nvidia chief financial officer Colette Kress noted that margins had slipped due to the transition to the “more complex and higher-cost” Blackwell systems. She said Blackwell had delivered $11bn in revenue for the quarter.
Nvidia shares rose 2 per cent in after-hours trading in New York, having risen almost 4 per cent during the regular session.
This is a developing story