NVIDIA Quarterly Earnings Far Exceed Wall Street Expectations

This chip manufacturer continues to exceed Wall Street's expectations, with revenue reaching $30.04 billion in the past three months, a year-on-year increase of 122%, demonstrating the unabated AI investment boom. According to FactSet, analysts initially projected earnings per share of $0.64 and sales of $28.6 billion.

During the earnings conference call, founder and CEO Jensen Huang stated that NVIDIA will deliver more chips and hardware next year than in the company's 31-year history.

Regarding their GPUs, Huang said, "Demand for Hopper remains strong, and the expectations for Blackwell are incredible."

"Blackwell samples have been sent to our partners and customers. AI Ethernet Spectrum-X and NVIDIA AI Enterprise software are two new product categories that have achieved significant scale, demonstrating that NVIDIA is a full-stack and data center-scale platform," he added.

He further stated, "Across the entire stack and ecosystem, we are helping leading model makers transition from consumer internet services to enterprises. Generative AI will fundamentally transform every industry."

The company expects to sell "billions of dollars" worth of such chips in the fourth quarter.

NVIDIA stock price still falling

Despite the increase in second-quarter revenue, investors are concerned about signs of growth slowdown and production issues, leading to a decline in the chip designer's stock price.

Investors seem worried about the slowdown in Blackwell AI chip. The stock fell as much as 7% in pre-market trading before narrowing the decline to 3%. Last month, SK Group CEO and Chairman of the Korea Chamber of Commerce and Industry (KCCI), Chey Tae-won, warned of the delicate supply-demand relationship. "If it doesn't make money, the AI boom will disappear, just like the gold rush," Chey said.

Recent estimates suggest that the tech industry needs to generate $600 billion annually to maintain a balance between AI investment gains and losses.

This Silicon Valley company currently has a market value of $3.1 trillion.