Nvidia's AI-Driven Revenue Doubles, But Share Price Hesitates
Nvidia's earnings call on Wednesday provided some relief for investors who have been waiting for signs of growth in the AI market. The chipmaker's revenue doubled from a year ago, reaching $96.2 billion in the most recent quarter, with a 106% increase from the same period last year.
The majority of Nvidia's business comes from sales to data centers, which saw a staggering 117% rise in revenue to $89 billion. Despite these impressive numbers, investors were initially underwhelmed by the report, causing Nvidia's shares to dip following its release.
However, it wasn't until CFO Colette Kress mentioned that the company expected its fiscal 2028 income to grow 70%, exceeding analysts' predictions of a 45% increase, that shares began to rise. The stock eventually jumped by about 4% after-hours, reversing course from an initial dip.
Nvidia's performance is being closely watched as it serves as a bellwether for the AI market. The company's CEO Jensen Huang is set to address investors in the earnings call this evening, amidst growing scrutiny over the industry's circular financing practices.