Nvidia reported a sharp rise in revenues and is forecasting roughly 70 percent revenue growth for the next fiscal year, Reuters reported. The chipmaker cautioned that shortages of memory components will continue to constrain the pace of its expansion.
In the fiscal second quarter ending in late July, Nvidia generated $96.2 billion in revenue, a 106 percent increase compared with the same period a year earlier. Net income rose to $59.7 billion, up 126 percent year‑on‑year. Revenue from the company’s data‑center segment alone reached $89 billion, a 117 percent increase.
Those figures illustrate the industry’s heavy reliance on Nvidia chips: virtually all major technology firms building AI tools and infrastructure — including Amazon, Meta, Google and Microsoft — use Nvidia solutions.
Jensen Huang, Nvidia’s chief executive officer, said: “Artificial intelligence has reached an inflection point. It’s doing useful work. Its applications are effective and profitable. Now compute is revenue.” Huang also noted that the company had not previously issued a full‑year forecast. A Reuters‑quoted analyst said the outlook is plausible given growing demand and an expanding customer base for AI technologies.
Nvidia said its Vera Rubin AI platform is expected to account for about one‑fifth of data‑center revenue in the current third quarter, which ends in October. The company also projects that demand from AI laboratories will make up roughly one‑quarter of its total business next year, indicating a diversification of its customer mix.
Although Nvidia’s guidance exceeds prior analyst expectations — analysts had on average forecast about 44 percent revenue growth for the next year ahead of the second‑quarter results — limited supply of memory components remains a near‑term cap on growth.
Why this matters
Nvidia’s results and guidance highlight that demand for AI compute has become a central driver of the technology sector, while hardware supply constraints can materially affect growth rates. The rapid expansion of the company’s data‑center revenues also signals continued heavy investment in AI infrastructure by major cloud and technology providers.
