Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) forecast third-quarter revenue above Wall Street estimates on Wednesday, extending a run of blowout results driven by insatiable demand for its AI chips.
Nvidia posted second-quarter revenue of $96.2 billion, topping analyst estimates of $92.2 billion and marking 106% growth from a year earlier. Adjusted earnings per share came in at $2.22, ahead of the $2.10 expected and up 120% year-over-year.
The company's data center segment, its largest by far, generated $89 billion in revenue, up 117% from a year ago and above the $85.8 billion analysts had projected. Edge computing revenue reached $7.2 billion, a 27% increase.
For the current quarter, Nvidia guided for revenue of $108 billion, plus or minus 2%, well above the $104.2 billion analysts had forecast. The company expects adjusted gross margin of 74%, plus or minus 50 basis points, and adjusted operating expenses of roughly $9 billion.
Adjusted operating income for the second quarter totaled $64 billion, up 124% from a year earlier, while adjusted net income rose 118% to $54 billion. Free cash flow was $21.3 billion.
Nvidia returned approximately $26 billion to shareholders during the quarter and had about $99 billion remaining under its buyback authorization. The company held $22.4 billion in cash and cash equivalents against $1 billion in short-term debt and $32.4 billion in long-term debt.
Nvidia said its next-generation Vera Rubin platform is ramping into full production, with racks now running at partner facilities.
"AI has reached its inflection point. It's doing useful work. Its tokens are productive and profitable. Now, compute is revenue," said Nvidia CEO Jensen Huang.
"The AI infrastructure buildout is at full steam. Vera Rubin, now in full production, was built to power exactly this moment," Huang added.
The chipmaker's stock gained over 8% on Thursday.
