Nvidia Reports Doubled Revenue, But Investors Focus On Future AI Growth

Nvidia's earnings beat expectations and its revenue doubled from a year ago, but it was the potential for future growth that excited investors. The chipmaker has seen soaring revenue sitting at the head of the AI boom.

The company earned $96.2 billion in the most recent quarter, a 106 percent rise from a year ago, according to its earnings report on Wednesday. Revenue from sales to data centers, an overwhelming chunk of its business, was $89 billion, an increase of 117 percent from a year ago.

Despite those blockbuster numbers, shares didn’t take an upward turn until the company’s earnings call on Wednesday evening. CFO Colette Kress told investors that the company expected its fiscal 2028 income to grow by 70 percent. Analysts had expected 45 percent. Nvidia shares rose more than 4 percent after-hours, reversing course after initially dipping following the earnings release.

Nvidia expects big growth because it is confident in the AI ecosystem’s growth and its crucial role in it. CEO Jensen Huang said on the earnings call that everybody wants to be part of the AI revolution and will have to be part of this computing shift.

Nvidia and Amazon on Wednesday also announced a new deal that will expand the use of Nvidia’s semiconductor chips across Amazon’s data centers. Amazon Web Service is set to use an additional 2 million of Nvidia’s graphics processing units across its infrastructure, expanding on a previous announcement in March.

Some market watchers worry that exuberance over AI has bid up tech stocks too high, and that it’s a bubble waiting to burst. However, leadership remains confident that future data center needs will continue to run on Nvidia infrastructure.