Newsletter
It’s Nvidia earnings time and wow, the chip giant did not disappoint. The world’s most valuable company dropped blockbuster quarterly results, smashing Wall Street expectations once again.
Here’s the quick breakdown:
- Net profit: $58.3 billion vs $18.8 billion last year
- Revenue: up 85% YoY to $81.62 billion vs $44.01 billion
So what’s driving this growth? AI, AI, and more AI.
Its data center business, the division that sells those coveted AI GPUs, brought in a record $75.2 billion, up a staggering 92% from last year.
Big Tech giants like Alphabet, Amazon, and Microsoft are expected to spend more than $700 billion on AI infrastructure this year, compared to roughly $400 billion in 2025.
CEO Jensen Huang believes Nvidia can grow even faster than its biggest customers. Why? Because a whole new category of clients is emerging: AI-native cloud companies built specifically for this boom.
But Huang isn’t stopping at chatbots and data centers.
According to him, the next big thing is “Physical AI”, think self-driving cars, robots, and intelligent machines that interact with the real world.
The company is also betting big on its new Vera CPU, which Huang says could unlock a $200 billion market opportunity.
Nvidia also announced plans to reward shareholders by buying back $80 billion in company stock and increasing its quarterly dividend from 1 cent to 25 cents per share.
The competition: Nvidia’s biggest customers are also trying to reduce their dependence on the company by building their own AI chips in-house. At the same time, rivals like Intel and AMD are aggressively chasing a slice of the booming AI chip market.
Nvidia clearly sees the threat. In March, it unveiled a new AI system and processor built using technology from Groq, a startup focused on AI inference chips.
