Nvidia has achieved record revenue as artificial intelligence reshapes the technology landscape, despite growing political challenges.
On Wednesday, the Santa Clara-based chipmaker reported $46.7bn (£34.6bn) in second-quarter revenue, a 56% increase compared with the same period in 2024.
Shares dipped in after-hours trading after executives admitted the company was still “working through geopolitical issues.” Nvidia remains caught in the trade tensions between Washington and Beijing.
Frequent US policy shifts under the Trump administration, aimed at maintaining American leadership in artificial intelligence, add further uncertainty for the company.
Tech giants drive record growth
Nvidia’s processors have become essential to the global AI boom.
The company highlighted strong demand from Meta, owner of Instagram, and OpenAI, developer of ChatGPT. Both are rapidly scaling their AI operations.
“The AI race is now on,” said Nvidia chief Jensen Huang in a call with analysts. He revealed that four major technology firms had doubled annual spending to $600bn.
“Artificial intelligence will accelerate GDP growth over time,” Huang added. “We provide the infrastructure powering that growth.”
Experts see Nvidia as dominant in the AI chip market. Colleen McHugh, chief investment officer at Wealthify, described the company as “the driving force behind the AI boom.”
She noted that Nvidia relies heavily on tech giants’ continued investment. If spending continues, revenue and share prices should keep rising.
Revenue from data centres rose 56% to $41.1bn but slightly missed analyst expectations. Investor Eileen Burbridge, founding partner of Passion Capital, said this weaker result caused the “share price wobble.”
Even so, she praised Nvidia’s growth as “unbelievable” while warning that excessive enthusiasm could create a bubble.
In July, Nvidia became the world’s first company valued at $4trn. The firm now expects $54bn in revenue for the current quarter, exceeding Wall Street forecasts.
Political risks cloud outlook
Despite record-breaking performance, Nvidia faces growing challenges from global politics.
In July, the company announced plans to resume sales of high-end AI chips to China. The decision followed lobbying from Huang, who persuaded the Trump administration to lift its ban on the H20 chip, developed for Chinese buyers.
The restriction had been introduced amid concerns the chips could support China’s military and domestic AI sector.
Executives confirmed that by late July, US officials began reviewing licenses for H20 sales. Some Chinese clients received approvals, but Nvidia has not shipped any chips.
The US government expects 15% of revenue from licensed H20 transactions. Nvidia excluded the H20 from its forecast and is lobbying for approval to sell its Blackwell chips in China, the world’s largest chip market.
Meanwhile, Beijing is accelerating domestic semiconductor production. “US export restrictions are fuelling Chinese chipmaking,” said Emarketer analyst Jacob Bourne.
He added that Nvidia’s long-term role as “the bellwether of the AI economy” may depend on whether its robotics expansion secures lasting leadership.
