AI boom boosts Nvidia despite 'geopolitical issues'
41 minutes ago Share Save Lily Jamali • @lilyjamali North America Technology Correspondent Reporting from San Francisco Share Save
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Computer-chip designer Nvidia has been boosted by big tech firms keen to expand their AI capabilities, despite dealing with US and China tensions. On Wednesday it reported $46.7bn revenue (£34.6bn) for the second three months of the year, a 56% surge from the same period in 2024. But Nvidia, which has been caught in the crossfire of a trade war between the US and China, said it "continued to work through geopolitical issues" and its shares fell in after-hours trading. The company has had to navigate the Trump administration's fast-changing policies aimed at ensuring the US remains ahead in AI development.
An ongoing AI boom
Nvidia's sophisticated chips have been an important part of the AI boom. On Wednesday it said demand for its products remains strong, especially from big tech firms including Instagram-owner Meta, and ChatGPT-maker OpenAI, as they race to build-out AI. "The AI race is now on," said Nvidia boss Jensen Huang in a call with analysts following the report's release, saying spending from four big tech firms had doubled to $600bn per year. "Over time, you would think that artificial intelligence would... accelerate GDP growth," Huang said. "Our contribution to that is a large part of the AI infrastructure." The company's revenue from data centres surged by 56% to $41.1bn, even as it fell slightly short of analysts' expectations. In July, Nvidia became the world's first $4trn company. The Santa Clara, California-based designer of artificial intelligence (AI) chips said revenue in the current quarter would probably grow to $54bn, topping the expectations of Wall Street analysts.
'Geopolitical issues'