Nvidia's Revenue Soars 124% as AI Demand Continues to Drive Growth
Nvidia's latest earnings report has sent shockwaves through Wall Street, with revenue skyrocketing to $96.2 billion in the second quarter - more than double the same period a year ago.
The company's chief financial officer Colette Kress announced that Nvidia expects revenue to jump another 70% next fiscal year, up from a previous estimate of 45%, sending the stock soaring in after-hours trading and up over 7% on Thursday morning.
Amazon has also entered into an agreement with Nvidia to purchase an additional 2 million chips, further driving demand for the company's products.
Nvidia is not immune to supply chain problems, however, with price increases in memory chip space exceeding expectations and shrinking margins slightly for the year ahead. Despite this, Kress noted that the scarcity of memory is being driven by the AI buildout - a trend that is benefiting Nvidia.