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NVIDIA reported another strong quarter. The growth is reportedly driven by strong demand for AI hardware. Recently, the AI chipmaker published its Q2 report, where the gain reached $96.2 billion, which is up 18% from the previous quarter and 106% from a year ago. Notably, the GAAP and non-GAAP margins of the company are both standing at 75.0%. The momentum seems to be stronger in the next quarter, where the company expects to have a jump of 70% in 2028.
About the growth, Jensen Huang, founder and CEO of NVIDIA, mentioned, “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue. This time last year, one lab alone was driving the buildout; today, we have a golden age of new AI labs and startups, multiple frontier labs scaling in parallel, a thriving open-model ecosystem and physical AI coming online, with strong momentum across the U.S. and around the world.”
Gaurav Arora, the head of research at SAHI, mentioned that the AI boom fully supported NVIDIA. To establish this point, he stated, “Revenue more than doubled YoY to $96.2 billion, comfortably beating the company’s own guidance, and EPS also came in well above estimates. What stands out is that the revenue beat was bigger than the earnings beat, which points to genuine demand rather than just cost-cutting.”
NVIDIA has become one of the biggest winners of the AI boom. Companies are spending billions on new AI systems, and much of that spending is going toward NVIDIA chips.
The problem is that investors now expect a lot from the company. NVIDIA has beaten estimates several times in recent quarters. A strong result is no longer enough to create excitement. The company needs to deliver an even bigger surprise to keep investors happy.
For now, there is little sign that demand for AI hardware is slowing. NVIDIA’s data centre business continues to grow at a fast pace. This remains the main force behind its rising sales.
Still, the next quarter could be harder to impress investors. NVIDIA has set a very high bar for itself. Strong AI demand may keep the money flowing, but the market will want to see whether the company can keep beating already high expectations.
