Nvidia, the artificial intelligence chipmaker, rebounded from a recent $600 billion loss in market value with strong quarterly results. The company reported a 78 percent increase in total revenue to $39.33 billion, with profit rising 80 percent to $22.09 billion. Although the growth rate has slowed compared to previous quarters, Nvidia’s performance exceeded Wall Street analysts’ expectations.
The company projects a 65 percent increase in revenue to $43 billion for the current quarter, driven by big tech companies’ continued investment in A.I. data centers. Nvidia, which controls approximately 90 percent of the market for graphics processing units powering A.I. systems, is rolling out a new series of A.I. chips called Blackwell.
Despite initial fears that companies might reduce spending on A.I. systems following challenges from DeepSeek, Nvidia continues to benefit from the increasing affordability of developing A.I. systems. The company’s data center revenue rose 93 percent to $35.58 billion, driven by strong sales of chips, cables, and high-performance computing solutions.
However, Nvidia faces geopolitical challenges, with the Biden administration restricting chip sales to China and capping sales to over 100 countries. Sales in China have fallen to less than 14 percent of revenue from 19 percent in the last fiscal year. Nvidia’s CEO, Jensen Huang, recently met with President Trump to discuss A.I. and semiconductor issues. Despite uncertainties surrounding geopolitical tensions, Nvidia remains optimistic about the future of A.I. advancements and the company’s growth potential.
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