Nvidia sales jump 56%, a sign the AI boom isn't slowing down

Nvidia, the artificial intelligence chipmaker, was crowned the world's first $4 trillion public company last month and has become perhaps the most important factor determining the direction of the stock market.

On Wednesday, the Silicon Valley company reported results that showed that spending on AI infrastructure remains robust, easing the anxieties of Wall Street and investors around the world.

Concerns over whether tech companies would continue shelling out billions to build AI data centres -- spending that has helped prop up the economy -- had mounted in recent months. But Nvidia's sales rose 56% to $46.74 billion in the three months that ended in July, just topping Wall Street's expectations. Profit increased more than 59% to $26.42 billion.


Revenue in the current quarter is projected to rise 54% from a year ago to $54 billion as tech companies pour money into data centres. The forecast was in line with Wall Street's prediction for $53.9 billion, but the company said its estimates did not include any sales for China, which would lift its revenue higher.

"The last year, AI has made tremendous progress," Jensen Huang, Nvidia's CEO, said during a call with analysts. He said the company's chips would benefit as spending on AI infrastructure increased to $3 trillion to $4 trillion by the end of the decade.

The company's board approved a plan to repurchase $60 billion of its stock, signaling its confidence in its prospects.

Nvidia's results have been closely watched since OpenAI released its ChatGPT chatbot in late 2022, igniting an AI boom. The company's fortunes have soared as tech companies have flocked to buy its chips, which are ideal for powering the development of AI.

Nvidia has grown into the market's most significant stock, accounting for 7.5% of every dollar in the S&P 500, up from 3% in December 2024. Its results also influence the values of tech and energy companies with AI businesses.

"The question has been: Will the AI wave continue, or could it meaningfully slow down?" said Melissa Otto, the head of research at S&P Global Visible Alpha. Failing to meet expectations "could blow up a lot of things," she said.