Strong AI chip demand fuels Nvidia’s Q2 results well beyond Wall Street’s expectations

Nvidia reported second-quarter revenue of $96.22 billion Wednesday, more than doubling from a year earlier as demand for artificial-intelligence computing remained strong. The Santa Clara, California, chipmaker posted GAAP net income of $59.69 billion, or $2.46 per diluted share, compared with $26.42 billion, or $1.08, a year earlier. Adjusted earnings were $2.22 per share, above the $2.09 Wall Street consensus cited by FactSet, while revenue exceeded the $92.27 billion consensus. Nvidia said data-center revenue reached about $89 billion, underscoring the central role of AI infrastructure in its growth. The company forecast roughly $108 billion in revenue for its fiscal third quarter, above analysts’ expectations near $104.86 billion. Operating expenses rose 55% to $8.41 billion, while gross margin was 75%. Shares initially fell after hours despite the results, reflecting unusually high investor expectations and concerns about future margins and spending. The results were released August 26 after U.S. markets closed.