Nvidia Reports Strong Second Quarter Revenue of $46.74bn, Allaying Concerns Over AI Hype
AI Surge Propels Nvidia’s Revenue by 56% | Tech News Update
Published On 28 Aug 2025
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Chipmaker Nvidia achieved a new sales record in the second quarter, indicating sustained demand for artificial intelligence despite concerns over its potential for overestimation.
Nvidia, the world’s most valuable company, reported a revenue increase of 56 percent year-on-year to $46.74bn for the quarter ending in July.
Quarterly profit reached $26.42bn, reflecting a yearly growth of 59 percent.
Investors were eagerly awaiting the tech giant’s latest earnings, seeing Nvidia as an indicator of the AI boom that has driven the US stock market to new heights.
Nvidia CEO Jensen Huang announced that production of the Blackwell Ultra platform, which utilizes the company’s most advanced chips, is “increasing at full speed” and that demand for its products is “extraordinary”.
“The AI race is on, and Blackwell is at its center,” Jensen stated.
Looking forward, Nvidia anticipates revenue of $54bn for the July-September quarter, subject to a 2 percent fluctuation, surpassing market expectations.
Following the release of the robust results, Nvidia’s stock price fell over 3 percent in after-hours trading, reflecting the high expectations surrounding the chipmaker, valued at more than $4.4 trillion.
Notably, Nvidia did not include any shipments to China in its sales figures, a market constrained by US government export controls restricting Beijing’s capacity to advance its AI capabilities.
Earlier this month, the Trump administration lifted the ban on sales of Nvidia’s H20 chip, designed specifically for the Chinese market, following persistent advocacy by Jensen Huang.
As part of its agreement with the Trump administration, Nvidia committed to remitting 15 percent of its chip revenue from Chinese sales to the US government.
The relaxation of the H20 ban could potentially unlock significant sales opportunities for Nvidia in China’s second-largest economy; however, this is complicated by a recent directive from Beijing advising local businesses against partnering with the company.
“Imagine the impact on this stock if the China business surges back, even partially,” The Kobeissi Letter, a newsletter covering capital markets, commented.
“Jensen Huang will likely work tirelessly on resolving the China issue. The AI Revolution is in full swing.”
Nvidia’s revenue has grown exponentially over the last two years, driven by intense demand for AI.
The company demonstrated triple-digit revenue growth for five consecutive quarters between mid-2023 and 2024.
Since the beginning of 2023, the value of Nvidia shares has multiplied by more than 11 times, with a more than 30 percent increase so far in 2025.
The company’s impressive performance, backed by billion-dollar AI investments from tech titans such as Microsoft, Meta, and Amazon, has sparked debates about whether AI is experiencing a speculative bubble.
In an interview with The Verge this month, Sam Altman, the CEO of OpenAI, which released the groundbreaking AI model ChatGPT, stated his belief that investors are “overly excited” about the technology.
