Nvidia released second-quarter earnings on Wednesday, with the world's leading artificial intelligence bellwether handily beating estimates across the board.
Nvidia's second-quarter earnings came in at $2.22 per share, which beat analysts' estimates of $2.10 per share. Revenue came in at $96.2 billion, compared to the consensus estimates of $92.1 billion.
Nvidia's data revenue of $89.0 billion was up 117% year over year
“AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue,” CEO Jensen Huang said in a statement. “And demand is accelerating. This time last year, one lab alone was driving the buildout; today, we have a golden age of new AI labs and startups, multiple frontier labs scaling in parallel, a thriving open-model ecosystem and physical AI coming online - with strong momentum across the U.S. and around the world."
Nvidia is also in the midst of huge product and investment cycles. The firm has begun shipping its new Vera Rubin AI systems to customers including Microsoft and OpenAI, with investors looking for details on how quickly sales are scaling and whether supply constraints have emerged.
"The AI infrastructure buildout is at full steam," Huang said. "Vera Rubin, now in full production, was built to power exactly this moment.”
Meanwhile, Bloomberg recently reported that Nvidia customers may face AI server price hikes above 15% as memory prices surge higher. The increases will affect servers using Grace Blackwell and Vera Rubin chips, and higher prices are expected on systems shipped early next year.
Earlier this month, Nvidia announced strategic partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to unlock over $500 billion in third-party capital to support the expansion of AI infrastructure.
With its $5.1 trillion market capitalization, Nvidia is the world's most valuable company. NVDA shares have come under selling pressure over the past few months, but the stock remains up about 11% in the year-to-date period. Zooming out, shares have risen over 800% since 2021.
Nvidia's stock closed Wednesday's session at $209.66, and shares traded higher by 4.5% in the after-hours period.