Nvidia posts profit and loss amid AI chip boom | Modern

Nvidia has announced its quarterly earnings and earnings amid exploding demand for high-end AI chips.

The US tech giant said on Wednesday that profits rose to $58.3bn in February-April, up 37% from the previous quarter and up more than 200% year-on-year.

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Revenue rose to $81.6bn, up 20 percent from the previous quarter and 85 percent from the same period in 2025.

Nvidia’s data center business led growth, with quarterly revenue up 92% year-on-year to $75.2bn.

The Santa Clara, California-based hardware chip giant posted revenue of $6.4bn, up 29 per cent from last year.

In a sweet move for shareholders, the world’s most valuable company said it would buy back $80bn in shares and raise its quarterly dividend from $0.01 a share to $0.25 a share.

Nvidia CEO Jensen Huang hailed the “amazing” results as evidence of the growth of AI.

“Demand has gone out of proportion,” Huang said in a conference call with investors and analysts.

“The reason is simple. Agentic AI has arrived,” said Huang, referring to the advent of autonomous AI models.

“AI can now play a useful and important role.”

Despite again destroying analysts’ expectations in the past, Nvidia’s latest results received mixed responses from the market.

Shares in Nvidia fell about 1.3 percent in early trading, reflecting skyrocketing expectations for a company whose growth since 2022 has raised its market cap to more than $5 trillion.

The impressive rise of Nvidia and the rise of other tech giants, such as Microsoft and Amazon, have led to discussions about whether AI has become too much and is creating a mass market bubble.

“Expectations are very high, and when a company like Nvidia has been doing well for a long time, it takes a lot of people to get excited,” Jay Goldberg, senior analyst of semiconductors and electronics at Seaport Research, told Al Jazeera.

“That’s the type of Wall Street.”

“All these products have had a lot of movement this year, but a lot of it is driven by the media,” Goldberg said, adding that the technology industry has not highlighted the “consumer story” of AI.

William Rhind, CEO and founder of New York-based investment firm GraniteShares, said the lack of action shows that expectations “have peaked.”

“Nvidia is no longer hitting the high bar – that’s the bar,” Rhind told Al Jazeera.

Rhind said Nvidia’s fortunes remained strong, pointing to rising dividends and shares as a sign of a company that has “more cash than it can rebuild the business”.

“When spending gradually starts to shift to acquisitions and dividends, you see the hypergrowth story starting to mature in real time,” he said.

“This is not a scam – it’s some kind of bullish.”

John Belton, portfolio manager at Gabelli Funds, said Nvidia’s latest acquisition “shouldn’t change the story one way or the other”.

“Overall, some solid money,” Belton told Al Jazeera.

“Most of the news is similar to the strong numbers we’ve been hearing for a few quarters, even without the devastating news,” Belton said.