Nvidia, a computer-chip designer, has seen a significant boost in revenue attributed to major technology companies looking to enhance their artificial intelligence (AI) capabilities, despite ongoing tensions between the US and China. The company reported $46.7 billion in revenue for the second quarter of the fiscal year, marking a 56% increase compared to the same period in 2024.
However, Nvidia is navigating the complexities of the US-China trade dispute, stating that it is actively addressing geopolitical challenges. Despite this, the company’s shares declined in after-hours trading. Nvidia’s advanced chips play a crucial role in the AI boom, with strong demand coming from tech firms such as Meta and OpenAI, which are racing to expand their AI technologies.
Nvidia’s CEO, Jensen Huang, noted during an analyst call that spending from significant tech companies has doubled to $600 billion annually, hinting at a competitive landscape in the AI sector. The company reported a 56% increase in revenue from its data center segment, although it fell slightly short of some analysts’ expectations. In July, Nvidia became the first company to reach a $4 trillion market valuation.
For the current quarter, Nvidia projects revenue of approximately $54 billion, exceeding Wall Street predictions. Nonetheless, the company remains vulnerable to the ongoing geopolitical tensions. In July, Nvidia announced it would resume sales of its high-end AI chips to China after lobbying the US administration to reverse a ban on its H20 chips, initially imposed due to concerns over their potential military use.
Recently, the US government began reviewing licenses for H20 chip sales specifically targeted at Chinese customers, although Nvidia has yet to ship any of these chips. Analysts have indicated that China’s domestic chip industry is growing in response to US export restrictions. The question of whether Nvidia’s expansion into robotics will help maintain its leadership position in the AI economy remains a topic of discussion among industry observers.
Source: https://www.bbc.com/news/articles/c3wnj8611y7o?at_medium=RSS&at_campaign=rss