Nvidia beats expectations with $96.2 billion in revenue: AI at a turning point

Chipmaker Nvidia, which holds the title of the world's most valuable company, reported quarterly revenue of $96.2 billion, comfortably beating Wall Street's expectations of $92.2 billion. The company's flagship data center revenue saw an extraordinary increase of 117 percent, reaching $89 billion.

The company's Chief Executive Officer (CEO) Jensen Huang made ambitious statements regarding the development process of artificial intelligence. Setting the revenue forecast for the next quarter at $108 billion, which is beyond predictions, Huang pointed out that artificial intelligence is now producing useful work. "AI has reached a turning point. The tokens it produces are efficient and profitable. Computing power is directly translating into revenue, and demand continues to grow rapidly," Huang stated.

EXPECTATIONS BEATEN, SHARES FELL

Nvidia, whose market value exceeds $5 trillion—surpassing even the gross domestic product of Japan, the world's fourth-largest economy—experienced a familiar ritual that repeats every quarter in the stock markets. Despite the record-breaking balance sheet that exceeded expectations, the company's shares lost 1.6 percent in the regular session and fell another 1.8 percent in after-hours trading following the earnings announcement.

Experts note that because the bar for market optimism is so high, a dynamic has emerged where only an extraordinarily strong vision can drive shares upward.

DEPENDENCE ON TECH GIANTS AND NEW INVESTMENTS

Nvidia's largest revenue sources are still tech giants such as Amazon, Google, and Microsoft. However, the fact that these companies have started designing their own custom chips brings critical questions regarding the future of the market. Seeking to balance this potential risk, the chip giant has begun to play a direct role in financing massive AI infrastructure projects.

In this context, the company has established a $500 billion capital pool with six asset managers from Wall Street for data center projects. Furthermore, it has made a financial commitment of up to $105 billion to support a massive OpenAI data center to be built in Ohio, which will initially have a capacity of 4.25 gigawatts.

CHINA MARKET AND VERA RUBIN ARCHITECTURE

One of the most important agenda items on Nvidia's roadmap continues to be the Chinese market, which remains in the shadow of US export policies. Following Washington's ban on the sale of the H20 chip, the company is only permitted to sell its more capable H200 chip to vetted Chinese customers. While sales to giants like ByteDance and Tencent continue, the Beijing administration's encouragement of companies to turn to domestic alternatives keeps the market fragile.

Accelerating its technological steps for the coming period, the company is preparing to launch the "Vera Rubin" architecture in the second half of the year, which will be the successor to the current Blackwell chips. Named after the American astronomer who conducted revolutionary work on dark matter, the Vera Rubin series is aimed at playing a leading role in meeting Nvidia's massive order backlog of approximately $1 trillion, which extends into 2026 and 2027.