Nvidia\u2019s latest quarterly results once again blew past Wall Street\u2019s expectations as revenue for the computer chip company\u2019s high-end artificial intelligence chips soared, the latest sign that AI infrastructure spending remains strong.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Revenue more than doubled from a year earlier to $96.22 billion, surpassing analysts\u2019 average forecast of $92.27 billion. <\/p>\n
\u201cAI has reached its inflection point. It\u2019s doing useful work. Its tokens are productive and profitable. Now, compute is revenue,\u201d said CEO Jensen Huang in a statement.<\/p>\n
The Santa Clara, California, company\u2019s results have regularly cleared the bar set by analysts in the past three years, often by a wide margin, since Nvidia\u2019s high-end chips emerged as AI\u2019s best building blocks.<\/p>\n
Along with higher profit and revenue, however, Nvidia\u2019s operating expenses surged 55% to $8.41 billion.<\/p>\n
For the current quarter, Nvidia forecast revenue of about $108 billion. Analysts are forecasting $104.86 billion.<\/p>\n
If Nvidia hits its revenue target for the August-October period, it will translate into a roughly 89% increase from last year \u2014 an indication that Nvidia\u2019s phenomenal growth rate is still accelerating. The company said it\u2019s not assuming any data center compute revenue from China in its outlook.<\/p>\n
Nvidia expects to grow its revenue in its fiscal year ending January 2028 by about 70%, citing surging demand for its AI-powering chips. In fact, the company\u2019s growth outlook would be closer to double, based on its customers\u2019 own forecasts, if it weren\u2019t for challenges in sourcing enough supplies to meet the chip production demand, noted CFO Colette Kress in a call with Wall Street analysts.<\/p>\n
Huang also emphasized the supply limitations the company is grappling with. <\/p>\n
\u201cOur entire supply chain is challenged,\u201d he told analysts. \u201cAt this point we have supply for 70%. … Our demand is much higher than that.\u201d<\/p>\n