Nvidia has reported another quarter of record-breaking results, underscoring the strength of demand for artificial intelligence even as concerns mount that the boom may be overheating.
Earnings beat expectations
The chipmaker, now the world’s most valuable company with a market capitalization above $4.4 trillion, said revenue for the May–July quarter rose 56% year-on-year to $46.74 billion. Net profit jumped 59% to $26.42 billion.
The figures came in slightly ahead of Wall Street expectations and reinforced Nvidia’s reputation as the primary beneficiary of the AI arms race, which has driven US equity markets to successive all-time highs.
Blackwell ultra ramps up
Chief executive Jensen Huang said demand for the company’s latest platform, Blackwell Ultra, was “extraordinary” and production was scaling “at full speed.”
“The AI race is on, and Blackwell is the platform at its centre,” Huang said.
For the current quarter through September, Nvidia forecast revenue of about $54 billion, plus or minus 2%, again modestly ahead of analyst projections.
Despite the upbeat outlook, Nvidia’s shares fell more than 3% in after-hours trading, a sign of just how elevated market expectations remain.
China sales uncertainty
Nvidia’s latest results excluded shipments to China, still restricted under US export controls aimed at curbing Beijing’s AI development. Earlier this month, the Trump administration lifted a ban on sales of the H20 chip, a product tailored for the Chinese market, following lobbying by Huang.
As part of the deal, Nvidia agreed to pay 15% of its China-related revenues to the US government. While the move could open the door to significant growth in the world’s second-largest economy, Beijing has recently urged domestic firms to reduce reliance on Nvidia, clouding its outlook.
Market analysts see huge upside potential if Chinese demand resumes. “Just imagine what will happen to this stock if the China business even comes half back to life,” said capital-markets newsletter The Kobeissi Letter.
AI boom drives valuation debate
Nvidia’s results highlight how AI has transformed the semiconductor sector. The company delivered five consecutive quarters of triple-digit revenue growth between mid-2023 and mid-2024, as big tech firms such as Microsoft, Meta and Amazon ploughed billions into AI infrastructure.
Its stock has surged more than 1,000% since the start of 2023 and is up over 30% in 2025 alone. The blistering rally has intensified debate over whether the sector is entering a speculative bubble.
Earlier this month, OpenAI chief executive Sam Altman warned that investors may be “overexcited” about AI, despite its long-term transformative potential.
