Nvidia earnings report for the second quarter of 2025 shows just how strong the global demand for artificial intelligence (AI) chips has become. On Wednesday, the US-based chip giant reported revenue of $46.7 billion, a 56% surge compared to the same period in 2024.
The company’s growth is being fuelled by the ongoing AI boom, as big tech firms such as Meta (Instagram’s parent company) and OpenAI (creator of ChatGPT) continue to spend heavily on AI infrastructure. Nvidia chief executive Jensen Huang said the spending from four major tech firms has now doubled to $600 billion per year, underlining how central Nvidia has become to the AI economy.
“The AI race is now on,” Huang told analysts, adding that AI development could eventually accelerate global GDP growth.
Nvidia stock reacts to earnings
Despite the strong results, Nvidia stock slipped slightly in after-hours trading. Analysts pointed out that revenue from the company’s data centre division, which surged 56% to $41.1bn, came in just below Wall Street expectations.
Eileen Burbridge, investor at Passion Capital, described Nvidia’s growth as “unbelievable,” but warned that the excitement around AI chips may have created a “bit of a bubble.”
Even so, Nvidia recently became the world’s first $4 trillion company, reflecting investor confidence in its dominant role in AI hardware.
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Geopolitical tensions over Nvidia chips
The Nvidia earnings report also highlighted ongoing challenges in China. Earlier this year, the company secured permission to resume sales of its H20 AI chips to Chinese customers, following a ban by the Trump administration. However, Nvidia confirmed it has not yet shipped any H20 chips despite some licenses being approved.
The US government has tightened controls, worried that advanced chips could benefit China’s military. Nvidia also continues to lobby for permission to sell its latest Blackwell AI chips to China, which remains the largest global market for semiconductors.
Industry experts say US restrictions are pushing China to boost its own chipmaking industry, raising the risk of stronger competition for Nvidia in the long run.
Outlook for 2025
Looking ahead, Nvidia said it expects revenue to grow to $54 billion in the current quarter, topping Wall Street forecasts. If achieved, this will further cement its role as the leading supplier of AI chips worldwide.
For now, the Nvidia earnings report shows that despite geopolitical challenges, the company remains at the heart of the AI revolution.
Mudassar Rasool is a seasoned professional with over 8 years of experience in education content writing. He has contributed 100% of the content on FetchPakistan.com.pk, focusing on categories such as Education & Jobs Updates, Results, Merit Lists, and Roll Number Slips. His expertise also extends to technology and telecom sectors, allowing us to deliver comprehensive insights across business, automotive industry, startups, sports, education, news, and more. Mudassar Rasool’s contributions significantly enrich this platform, enhancing coverage and depth across diverse fields.
