The US economy breathes a sigh of relief after Nvidia revealed its financial results for the last four months. With an increase in profits by 65%compared to the same dates last year, The bursting of the artificial intelligence bubble is delayed at least another semester.
We in the press have been talking about the issue for months, seeing how billions (with a b) of dollars are invested, while the benefits of AI still do not arrive. That fear has been hidden by investors… until this week. In the last five days before Nvidia’s earnings report, the S&P 500 index is down 3.5%, and Nvidia shares are down 7%.
Jensen Huang’s company is almost the only AI company making money, and it’s investing it, hundreds of billions of dollars, in deals with OpenAI, Intel, xAI, and others to build data centers. With its chips, of course…
Nvidia, record revenue and profits
It is an example of circular economywhere the companies that are part of a market finance each other: the supplier lends money to customers so that they buy their products.
This means that if the supplier is in financial trouble, the entire circular economy collapses like a house of cards. That is the fear that investors had this week, hence the fall in the stock market.
Luckily for them, Nvidia’s results in the last quarter are excellent. In fact, they are so brutal that they represent a new source of concern.
Jensen Huang’s company had a turnover of $57 billion in the last three months62% more than in the same quarter last year. Net income reaches $32 billion, a year-on-year growth of 65%.
These are spectacular figures, for a single quarter. It is not strange that its CEO, Jensen Huang, is elated: “Blackwell sales have skyrocketed and cloud GPUs are out of stock,” he says in the statement.
And he continues: “Computing demand continues to accelerate and grow exponentially in the areas of training and inference. We have entered the virtuous circle of AI. The AI ecosystem is growing rapidly, with more core model creators, more AI startups, in more sectors and in more countries. “AI is reaching everywhere, doing everything, everything at once.”
Nvidia’s big business is data centers and AI chips. Here it has earned 51.2 billion dollars, which represents an increase of 66% year-on-year. Represents 89% of the company’s total revenue.
The green company’s former core business, gaming graphics cards and PCs with AIno longer represents even 10% of their income. But it continues to grow: they contributed 4.3 billion dollars, 30% more than the previous year.
Professional viewing adds $760 million, up 56% from the previous year. Finally, automotive and robotics achieved $592 million in revenue, an increase of 32% year-over-year.
These shocking figures have reassured investorsand surely today the Stock Market skyrockets. But the threat has not dissipated. Nvidia breaks records, so it will be able to continue maintaining that circular economy. But if money is coming out of your ears, it is because you are investing enormous amounts in AI. And until stable revenues from the rest of the AI companies arrive, the threat of the bubble is going to be there, like a Sword of Damocles.