Nvidia said its chip sales grew rapidly in the second quarter and that it expects strong growth in the coming months, pushing back against some critics who worry that hype around artificial intelligence is getting ahead of business reality.
The company, whose hardware is the backbone of the AI boom, powering everything from large-scale language models to Tesla’s electric cars, more than doubled its revenue year over year to $30 billion and expects revenue to rise 80% year over year to $32.5 billion in the next quarter.
The chipmaker’s forecasts beat Wall Street’s mid-point estimates for the eighth straight quarter but fell short of some of the most optimistic analysts’ projections, suggesting the big annual gains that have buoyed its shares may be slowing.
Investor enthusiasm for AI has propelled Nvidia to a market capitalization of more than $3 trillion, making it the second-most valuable company in the world. At least one New York bar hosted a viewing party for the company’s earnings today, but its shares fell 6% to $118 in after-hours trading.
