Nvidia has reported record revenue as artificial intelligence fuels strong growth, even while geopolitical pressures challenge the company\u2019s outlook.<\/p>\n\n\n\n
On Wednesday, the Santa Clara-based chipmaker announced $46.7bn (\u00a334.6bn) in second-quarter revenue, a 56% increase from the same period in 2024.<\/p>\n\n\n\n
Shares fell in after-hours trading after executives acknowledged the company was still \u201cworking through geopolitical issues.\u201d Nvidia remains at the center of trade tensions between Washington and Beijing.<\/p>\n\n\n\n
Rapid policy changes under the Trump administration, aimed at maintaining US leadership in artificial intelligence, add further uncertainty to the company\u2019s prospects.<\/p>\n\n\n\n
Nvidia\u2019s processors have become essential to the global AI surge.<\/p>\n\n\n\n
The company highlighted strong demand from Meta, owner of Instagram, and OpenAI, creator of ChatGPT. Both firms are rapidly expanding their AI operations.<\/p>\n\n\n\n
\u201cThe AI race is now on,\u201d said Nvidia chief Jensen Huang in a call with analysts. He revealed that four major technology firms had doubled annual spending to $600bn.<\/p>\n\n\n\n
\u201cArtificial intelligence will accelerate GDP growth over time,\u201d Huang added. \u201cWe provide the infrastructure powering that growth.\u201d<\/p>\n\n\n\n
Analysts emphasize Nvidia\u2019s dominant position in the AI chip market. Colleen McHugh, chief investment officer at Wealthify, described the company as \u201cthe driving force behind the AI boom.\u201d<\/p>\n\n\n\n
She stressed that Nvidia relies heavily on continued investment from tech giants. If spending continues, she said, revenue and share prices should keep climbing.<\/p>\n\n\n\n
Revenue from data centres rose 56% to $41.1bn but slightly missed analyst expectations. Investor Eileen Burbridge, founding partner of Passion Capital, said this weaker performance triggered the \u201cshare price wobble.\u201d<\/p>\n\n\n\n
Even so, she described Nvidia\u2019s growth as \u201cunbelievable\u201d while warning that excessive enthusiasm could create a bubble.<\/p>\n\n\n\n
In July, Nvidia became the first company in the world valued at $4trn. The firm now expects $54bn in revenue for the current quarter, surpassing Wall Street forecasts.<\/p>\n\n\n\n
Despite record earnings, Nvidia faces increasing political risks.<\/p>\n\n\n\n
In July, the company announced plans to resume sales of high-end AI chips to China. The decision followed lobbying from Huang, who persuaded the Trump administration to lift its ban on the H20 chip, designed for Chinese buyers.<\/p>\n\n\n\n
The restriction had been introduced amid concerns the chips could support China\u2019s military and domestic AI sector.<\/p>\n\n\n\n
Executives confirmed that by late July, US officials began reviewing licenses for H20 sales. Some Chinese clients received approvals, but Nvidia has not shipped the chips.<\/p>\n\n\n\n
The US government expects to collect 15% of revenue from licensed H20 sales. Nvidia excluded the H20 from its forecast and continues lobbying for approval to sell its new Blackwell chips in China, the world\u2019s largest chip market.<\/p>\n\n\n\n
Meanwhile, Beijing is intensifying efforts to expand its domestic semiconductor industry. \u201cUS export restrictions are fuelling Chinese chipmaking,\u201d said Emarketer analyst Jacob Bourne.<\/p>\n\n\n\n
He added that Nvidia\u2019s long-term role as \u201cthe bellwether of the AI economy\u201d may depend on whether its robotics expansion secures lasting leadership.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Nvidia has reported record revenue as artificial intelligence fuels strong growth, even while geopolitical pressures challenge the company\u2019s outlook. On Wednesday, the Santa Clara-based chipmaker announced $46.7bn (\u00a334.6bn) in second-quarter revenue, a 56% increase from the same period in 2024. Shares fell in after-hours trading after executives acknowledged the company was still \u201cworking through geopolitical<\/p>\n","protected":false},"author":1,"featured_media":11229,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-7781","post","type-post","status-publish","format-standard","has-post-thumbnail","category-news"],"_links":{"self":[{"href":"https:\/\/pappusaha.com\/euronews24\/wp-json\/wp\/v2\/posts\/7781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pappusaha.com\/euronews24\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pappusaha.com\/euronews24\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pappusaha.com\/euronews24\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pappusaha.com\/euronews24\/wp-json\/wp\/v2\/comments?post=7781"}],"version-history":[{"count":0,"href":"https:\/\/pappusaha.com\/euronews24\/wp-json\/wp\/v2\/posts\/7781\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pappusaha.com\/euronews24\/wp-json\/wp\/v2\/media\/11229"}],"wp:attachment":[{"href":"https:\/\/pappusaha.com\/euronews24\/wp-json\/wp\/v2\/media?parent=7781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pappusaha.com\/euronews24\/wp-json\/wp\/v2\/categories?post=7781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pappusaha.com\/euronews24\/wp-json\/wp\/v2\/tags?post=7781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}