Chipmaker Nvidia crushes quarterly expectations with $13.5bn in revenue

The chipmaker Nvidia has far surpassed quarterly expectations, raking in $13.5bn in revenue – over $2bn more than the $11.2bn Wall Street analysts had predicted – amid skyrocketing demand for its computer chips that power artificial intelligence (AI) systems.

The blockbuster second quarter comes at a moment of intense hype around generative AI, a mood that Nvidia has been uniquely positioned to capture. The 30-year-old company is one of the biggest winners in the AI boom and is now valued at over $1tn, with its chips powering nearly all the world’s major artificial intelligence apps, including ChatGPT.

Unlike some of its competitors such as Intel, Micron Technologies and Advance Micro Devices (AMD), Nvidia has dedicated a significant portion of its investment and development efforts on chips that can power AI systems,rather than solely investing in angling for market share in spaces with existing demands, such as data centers.