Nvidia, now the world’s most valuable company, reported record-breaking earnings this week as demand for its AI chips shows no sign of slowing down. In its latest quarterly report, the company announced $46.7 billion in revenue — a 56% year-over-year increase — fueled largely by its fast-growing data center business.
Data Center Sales Lead Growth
Nvidia revealed that $41.1 billion of its total revenue came from data center sales alone, a 56% jump compared to the same quarter last year. Much of this growth was powered by its latest generation of GPUs, known as Blackwell, which contributed $27 billion to the quarter’s sales.
CEO Jensen Huang described Blackwell as “the AI platform the world has been waiting for,” emphasizing its central role in the global AI race. Nvidia believes that AI infrastructure spending could reach between $3 trillion and $4 trillion by the end of the decade, with Huang noting that this level of investment is “fairly sensible for the next five years.”
Net Income Surges
Alongside revenue growth, Nvidia’s net income soared to $26.4 billion, a 59% increase from the same period last year. The results cement Nvidia’s position as a key supplier for companies building large-scale AI models and services.
The company also highlighted its technology’s role in powering OpenAI’s recently launched open-source gpt-oss models, which were trained using Nvidia’s Blackwell GB200 NVL72 systems capable of processing “1.5 million tokens per second.”
China Market Challenges
Despite record results, Nvidia continues to face challenges in China. The company reported zero sales of its China-focused H20 chip last quarter. While it did sell $650 million worth of H20 units to a non-Chinese customer, geopolitical tensions remain a significant obstacle.
The U.S. government currently restricts sales of advanced GPUs to Chinese customers. Under a controversial arrangement introduced by President Trump, Nvidia is allowed to sell chips to China if it pays a 15% export tax to the U.S. Treasury. However, Nvidia CFO Colette Kress said on the earnings call that uncertainty around the legality of the arrangement has delayed shipments.
China’s government has also discouraged domestic companies from using Nvidia hardware, leading the company to reportedly halt production of its H20 chip earlier this month.
Looking Ahead
For the upcoming quarter, Nvidia projects revenue of $54 billion, with guidance that could vary by 2% in either direction. The forecast does not include any H20 shipments to China, signaling that geopolitical factors will remain a key risk for the company.
