Nvidia's latest quarterly results once again blew past Wall Street's expectations as revenue for the computer chip company's high-end artificial intelligence chips soared, the latest sign that AI infrastructure spending remains strong. The company reported on Wednesday net income of $59.69 billion, or $2.46 per share, for the May-July period. That compares to net income of $26.42 billion, or $1.08 per share, in the same quarter last year.
- Excluding certain items, earnings were $2.22 per share, well above the $2.09 per share consensus forecast by Wall Street analysts, according to FactSet. Revenue more than doubled from a year earlier to $96.22 billion, surpassing analysts' average forecast of $92.27 billion.
The Santa Clara, California, company's results have regularly cleared the bar set by analysts in the past three years, often by a wide margin, since Nvidia's high-end chips emerged as AI's best building blocks, the AP reports. Along with higher profit and revenue, however, Nvidia's operating expenses surged 55% to $8.41 billion. For the current quarter, Nvidia forecast revenue of about $108 billion. Analysts are forecasting $104.86 billion. If Nvidia hits its revenue target for the August-October period, it will translate into a roughly 89% increase from last year—an indication that Nvidia's phenomenal growth rate is still accelerating.
"AI has reached its inflection point. It's doing useful work. Its tokens are productive and profitable. Now, compute is revenue," said CEO Jensen Huang in a statement. Investors, however, have serious concerns about the complex AI spending cycle, and some tech giants have launched in-house chip efforts to reduce their reliance on Nvidia, reports Reuters. While AI has powered stock market gains and US economic growth in recent years, there's been growing skepticism about whether AI will justify the trillions of dollars that are being spent to develop the technology. Nvidia's stock, which fell 1.6% in regular trading Wednesday, rose more than 4% in after-hours trading.
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