The American graphics processor manufacturer, Nvidia Corp., more than doubled its net profit and revenue in the second quarter of the 2027 financial year, against a backdrop of continued growth in demand for chips to support developments in the field of artificial intelligence.
Adjusted profit and revenue exceeded market expectations, as did the company’s forecast for the next financial year.
According to an Nvidia press release, net profit for the quarter ending 26 July rose to $59.69 billion, or $2.46 per share, compared with $26.42 billion, or $1.08 per share, for the same period the previous year.
Earnings excluding one-off items amounted to $2.22 per share.
The company’s quarterly revenue rose to $96.22 billion from $46.74 billion a year earlier.
Analysts surveyed by FactSet had forecast, on average, that Nvidia’s adjusted earnings would be $2.09 per share on revenue of $92.3 billion.
The data centre division increased its revenue 2.2-fold to $89 billion. Revenue from the Edge Computing division rose by 27 per cent to $7.2 billion.
According to the company’s forecast, its revenue for the third financial quarter will be $108 billion, plus or minus 2 per cent.
Nvidia’s Chief Executive Jensen Huang said on Wednesday that demand for artificial intelligence chips is “very high and continues to grow faster and faster”.
“We are witnessing a turning point in the field of AI. It is already doing useful work, creating real value and generating profit. Computing power is now a source of revenue,” said Huang.
The company expects its revenue to increase by 70 per cent in the 2028 financial year, said Nvidia’s Chief Financial Officer, Colette Kress. Analysts’ consensus forecast predicts growth of 45 per cent.
Last quarter, Nvidia returned around $26 billion to shareholders through dividends and share buy-backs. The company will pay a dividend of $0.25 per share on 1 October.
Nvidia’s shares rose by 4.7 per cent in after-hours trading on Wednesday. Since the start of this year, their value has risen by 12.4 per cent.