Nvidia posts record profit of $58.3bn amid AI chip boom
Al Jazeera • • general
Key Points:
- Nvidia reported record quarterly profit of $58.3 billion for February-April, a 37% increase from the prior quarter and over 200% year-on-year, driven by strong demand for AI chips.
- Revenue rose 20% from the previous quarter to $81.6 billion, with the data-centre business growing 92% year-on-year to $75.2 billion, while the hardware unit generated $6.4 billion in revenue.
- The company forecasted $91 billion in revenue for the upcoming quarter, surpassing most analysts' expectations, and announced an $80 billion share buyback along with a dividend increase from $0.01 to $0.25 per share.
- Despite the strong financial performance, Nvidia's shares fell 1.3% in after-hours trading, reflecting market expectations already priced into the stock amid debates about AI hype and valuation bubbles.
- Analysts noted that Nvidia’s results indicate a maturing growth phase, with capital increasingly allocated to shareholder returns, signaling a shift from hypergrowth to a more stable, bullish outlook.