Nvidia Crushes Q2 Estimates, AI Fever Unabated

Nvidia's quarterly results show that the company handily beat consensus estimates and raised its third-quarter guidance, highlighting Wall Street's elevated expectations for AI chip designer Nvidia.

The company reported a 117% year-over-year increase in second-quarter data center revenue, which rose to $89 billion. The third-quarter revenue is expected to hit $108 billion, give or take.

Nvidia's shares jumped 4.2% in heavy trading after the report, with more than 50 million shares changing hands. Fans of the company see the news as positive for the AI sector, but some are cautious about the implications of financing actions taken by large firms.