Nvidia Reports ‘Off the Charts’ Demand for AI Chips as Earnings Surge

Nvidia delivered another blockbuster quarter, reporting soaring demand for its AI chips and beating Wall Street expectations, sending its shares higher on Wednesday. The company continues to dominate the global AI hardware market even as analysts increasingly question whether the industry is heading toward an “AI bubble.”

During the earnings call, CEO Jensen Huang pushed back against bubble concerns, saying Nvidia sees a fundamentally different trend unfolding. He explained that businesses worldwide are rapidly transitioning from traditional CPU-based computing to AI-driven systems powered by GPUs — the core of Nvidia’s success.

Huang emphasized that software is also evolving to meet AI-first needs, while intelligent “AI agents” are taking over tasks once handled by human operators. Nvidia’s unified architecture, he said, uniquely positions the company to support these shifts across every stage of the AI pipeline.

Nvidia reported profit of $31.9 billion on a record-breaking quarterly revenue of $57 billion, marking a massive 60 percent increase compared to the same period last year. The company expects the momentum to continue, forecasting $65 billion in revenue for the current quarter — nearly $3 billion more than Wall Street projections.

“Blackwell sales are off the charts, and cloud GPUs are sold out,” Huang said, referring to its latest generation of high-performance hardware. He added that the AI ecosystem is expanding rapidly, with new model developers, startups and industries adopting Nvidia technology in more countries than ever.

Most of the earnings came from Nvidia’s data center GPU division, which remains the backbone of the global AI boom. With a valuation exceeding $4.5 trillion, Nvidia continues to hold its position as one of the world’s most valuable companies.

Industry analysts hailed the results as a major win for the tech sector. Wedbush’s Dan Ives called the earnings a “pop the champagne” moment and said fears of an AI bubble appear overstated.

Still, Nvidia faces challenges in China due to ongoing geopolitical tensions. Sales of its H-20 chips — specifically designed to comply with U.S. export restrictions — totaled only $50 million. CFO Colette Kress said that large purchase orders failed to materialize because of an increasingly competitive Chinese market and national security concerns raised by Beijing.

Despite these headwinds, Nvidia announced major partnerships during the quarter. OpenAI will deploy at least 10 gigawatts of Nvidia systems to power next-generation AI infrastructure, while Anthropic will use one gigawatt of compute capacity built on Nvidia’s latest hardware.

Huang said that maintaining U.S. leadership in AI computing will require broad support from developers and businesses, including those in China. For now, Nvidia’s unprecedented demand and global influence suggest the AI boom is far from slowing down.