Expectations for the chipmaker have been through the roof because of its dominance in a key component for artificial intelligence systems.
This summer, Wall Street and Silicon Valley began to question whether generative artificial intelligence could produce enough benefits to justify its staggering costs.
But the chipmaker Nvidia showed on Wednesday that enthusiasm for A.I. is still running hot. The company, a bellwether for A.I. spending, blew past Wall Street’s expectations for another quarter, reporting that its sales and profit had more than doubled during the three months that ended in July. It also projected that sales in the current quarter would increase 80 percent from a year ago, exceeding earlier estimates.
Revenue was $30.04 billion in the quarter, a 122 percent increase, surpassing its $28 billion estimate in May. Net income rose 174 percent to $16.95 billion, eclipsing the most recent quarterly profits of Meta and Amazon.
Shares in the company, which has been one of the market’s hottest stocks, fell by as much as 4 percent in after-hours trading, as some investors had been looking for even higher projected revenue in the current quarter.
The company said it would spend an additional $50 billion on repurchasing its own shares. In the quarter ending in July, it spent $15.4 billion on share repurchases and dividends.
The results speak to how Nvidia continues to dominate the market for A.I. chips, even as it faces rising competition and staggering expectations. Years before other big chip companies, Nvidia’s chief executive, Jensen Huang, bet that semiconductors known as graphics processing units, or GPUs, would make A.I. systems possible. He built the company over the ensuing years to corner the market.