Nvidia, one of the world's most valuable companies, reported $46.7 billion in revenue in the second quarter, up 56% from the same period last year, driven by rising demand for AI-focused data centers. The company's net profit rose 59% to $26.4 billion.
The bulk of the revenue — $41.1 billion — came from data centers. The Blackwell series of GPUs was particularly notable here. Blackwell alone generated $27 billion in sales. The company's CEO, Jensen Huang, called Blackwell "the AI platform the world has been waiting for" and said it makes sense to invest $3-4 trillion in AI infrastructure over the next five years.
However, Nvidia's results fell slightly short of Wall Street expectations. The company's shares fell after the report as data center revenues fell short of forecasts. Nvidia said it expects revenue of $54 billion in the third quarter.
One of the company’s biggest challenges is the uncertainty in the Chinese market. Due to U.S. export restrictions, the specially designed H20 chip could not be sold to Chinese customers this quarter. Nvidia has only sold $650 million worth of H20 to one customer outside of China. The company’s CFO, Colette Kress, said that uncertainties in the licensing process and the restrictive stance of the Chinese government have negatively affected sales. According to her, if the necessary permits are obtained, H20 sales could be between $2 billion and $5 billion.
Nvidia has been increasing its annual revenue by more than 50% for nine consecutive quarters. However, analysts believe that the last reporting period was a period of relatively weak growth for the company.
