Nvidia has once again shown its mettle in the tech world. The AI chip manufacturer saw its revenue jump by 69%, reaching an impressive $44.1 billion this quarter, even as it faced tough regulatory hurdles.
Recent U.S. government restrictions on selling AI chips to China have undoubtedly added pressure. Still, Nvidia navigated these challenges with skill, recently gaining approval to offer similar chips in the Middle East, which helped balance the scales.
The company also reported a 26% rise in net income, which totalled $18.78 billion. While this figure missed the higher expectations of $19.49 billion, it was more than offset by its revenue performance, which beat Wall Street’s prediction of $43.28 billion.
It’s clear that Nvidia isn’t letting hurdles slow it down. The tough U.S. policies, expected to cost around $4.5 billion in revenue, came in below the earlier forecast of $5.5 billion – a small win for the company in a tricky market.
Looking ahead, Nvidia is optimistic. The firm anticipates a 50% revenue boost to $45 billion in the next quarter, thanks in large part to its new AI chip, Blackwell. Wall Street’s forecast of $45.75 billion closely mirrors this outlook, signalling strong confidence in the tech sector’s growing reliance on AI.
Investors took notice as well, with Nvidia’s stock rising by more than 4% in after-hours trading. The company now ranks as the world’s second-most-valuable, trailing only Microsoft and edging past Apple, with a market valuation of $3.3 trillion.
