Nvidia’s AI-Fueled Growth Soars with $46.7 Billion Quarterly Revenue, Blackwell Chip Demand Surges Amidst US-China Trade Tensions
NVIDIA, the globally recognized industry leader, announced another quarter of robust sales growth on Wednesday, with a revenue figure of $46.7 billion, marking a 56% increase compared to the same period last year. The primary driver behind this growth was the company’s AI-focused data center business, which experienced a 56% year-on-year surge in revenue.
NVIDIA’s net income also witnessed significant growth since the previous year. The corporation reported a net income of $26.4 billion during the second quarter, representing a 59% increase compared to the same period last year.
In the recent quarter, NVIDIA amassed $41.1 billion in revenue from data center sales, indicating an unabated demand for advanced GPUs among AI companies. The company’s latest generation of chips, codenamed Blackwell, accounted for $27 billion of those sales.
“Blackwell is the AI platform the world has been anticipating,” stated CEO Jensen Huang in a statement accompanying the release. “The race in AI is on, and Blackwell stands at its epicenter.”
Huang expressed optimism about the future spending on AI infrastructure, predicting $3 to 4 trillion worth of investments by the end of the decade. He further elaborated that this estimation seems practical for the next five years during a discussion with an analyst.
NVIDIA highlighted 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 rack-scale system.
The earnings report also shed light on NVIDIA’s ongoing efforts to penetrate the Chinese market for its chips. The corporation reported no sales of its China-focused H20 chip to Chinese customers during the past quarter; however, it did mention that $650 million worth of H20 chips had been sold to a customer outside China.
The United States has historically restricted advanced GPU sales to Chinese customers, but under President Trump, the geopolitical scenario has experienced significant changes. NVIDIA is now allowed to sell chips to China, provided it pays a 15% export tax to the U.S. Treasury as part of an unusual agreement that legal scholars have deemed an unconstitutional misuse of power.
During the earnings call, NVIDIA CFO Colette Kress addressed the lack of shipments, stating that uncertainty surrounding the arrangement—which has yet to be formalized into federal regulation—is responsible for this situation. “While a select number of our China-based customers have received licenses over the past few weeks,” Kress said, “we have not shipped any H20 devices based on those licenses.”
Despite the Chinese government’s official discouragement of NVIDIA chip usage by local businesses, reports suggest that the company halted production of the H20 chip earlier this month.
NVIDIA forecasts $54 billion in revenue for the third quarter. The company also noted that its third-quarter outlook, which could fluctuate by up to 2%, does not account for any potential H20 shipments to China.
