AI Chip Leader Nvidia Posts 59% Profit Jump, Eyes $54B Next Quarter
Nvidia posts 59% profit jump 🚀, forecasts $54B 📊 revenue as AI boom powers growth despite U.S.–China trade tensions.
Nvidia Revenue Jumps as Blackwell Chips Power AI Race 🏁 — But Is a Bubble Looming?
Nvidia reported a 56% year-on-year surge ⬆ in revenue, hitting a record-breaking $46.74 billion 💰 for the quarter ending in July — confirming that global demand for artificial intelligence (AI) hardware remains robust. Profit climbed even faster, rising 59% ⬆ to $26.42 billion in Wednesday’s earnings release.
Despite these stellar results, Nvidia’s stock price fell over 3% ⬇ in after-hours trading — a sign of the sky-high expectations weighing on the $4.4 trillion-valued 🏦 chipmaker, now the world’s most valuable company.
AI boom fuels record growth ⚡
Nvidia’s results reinforce its role as the leading barometer of the AI revolution, with advanced GPUs powering AI models for Microsoft, Meta, Amazon and other tech giants. CEO Jensen Huang said production of Blackwell Ultra — Nvidia’s newest platform — is ramping up “at full speed” ⚙ to meet soaring demand.
“The AI race is on 🏁, and Blackwell is the platform at its centre,” Huang declared.
Looking ahead, Nvidia projects $54 billion (± 2%) 📊 revenue for the current quarter, slightly exceeding Wall Street forecasts.
China sales: a major wild card 🎯
Nvidia’s quarterly revenue excluded shipments to China 🇨🇳, restricted by U.S. export controls designed to limit Beijing’s AI capabilities. Earlier this month, President Donald Trump’s administration 🇺🇸 lifted a ban on Nvidia’s H20 chip — specifically designed for China — following intense lobbying by Huang.
Under the agreement, Nvidia will pay 15% of Chinese sales revenue 💵 to the U.S. government. However, Beijing has reportedly urged local companies to avoid Nvidia products, complicating any future market rebound.
A recent note from The Kobeissi Letter captured market sentiment:
“Just imagine what will happen to this stock if the China business even comes half back to life 🌐.”
Stellar run raises bubble concerns 🎢
Nvidia’s revenue has expanded at breakneck speed 🚀 — including five consecutive quarters of triple-digit growth from mid-2023 to 2024. Since early 2023, its stock has risen more than 11× 📈, adding 30% ⬆ in 2025 alone.
But such rapid growth has triggered talk of an AI investment bubble 💭. OpenAI CEO Sam Altman recently cautioned that investors may be “overexcited” about the technology — a warning echoed across financial markets.
Still, with unprecedented GPU demand and multibillion-dollar AI investments, Nvidia remains at the forefront 🌟 of the most transformative tech shift in decades.
