Computer chip designer Nvidia is being boosted by a large tech company keen to expand its AI capabilities despite dealing with tensions between the US and China.
On Wednesday, it reported revenue of $46.7 billion (£34.6 billion) over the two months of the year. This was a 56% surge from the same period in 2024.
But Nvidia, caught up in the crossfire of the US-China trade war, said it had “continued to work through geopolitical issues,” saying its stock had declined due to after-hours trading.
The company had to navigate the Trump administration's rapidly changing policies aimed at ensuring the US was ahead of its AI development.
Nvidia's refined chips were a key part of the AI boom.
On Wednesday, he said that addiction symptoms remained strong, especially from large tech companies, including Instagram owners Meta and ChatGpt-Maker Openai.
“The AI race is currently underway,” Nvidia boss Jensen Huang said in a call with analysts after the release of the report, saying spending from the four major tech companies doubled to $600 million a year.
“As time goes by, you'll think that artificial intelligence will… accelerate GDP growth,” Huang said. “Our contribution to that is a large part of our AI infrastructure.”
Our revenue from the data centers rose 56% to $41.1 billion, even if it was slightly under-expected to analyst expectations.
In July, Nvidia became the world's first 4-ton company.
Santa Clara, a California-based AI chip, said its revenues for the current quarter were likely to rise to $54 billion, exceeding expectations by Wall Street analysts.
However, Nvidia continues to be exposed to geopolitical tensions between the US and China.
The company announced in July that it would resume selling high-end artificial intelligence chips to China.
The move comes after Huang succeeded in the Trump administration to reverse the ban on selling H20 chips from a company developed for the Chinese market.
The administration had imposed a ban amid concerns that chips could benefit Chinese troops, along with country-based AI developers.
On Wednesday, executives said in late July that the US government began reviewing licenses for the sale of H20 chips designed for Chinese customers.
However, the company added that some China-based customers who have received these licenses in recent weeks have not shipped the H20.
The US government expects to earn 15% of the revenue generated from approved H20 sales.
Nvidia said it did not include H20 in its current quarterly outlook, and that the US government is also lobbying to approve the sale of Blackwell ships to China, the largest market for chips.
In the meantime, analysts say China is cultivating competition in the sector currently controlled by Nvidia.
“US export restrictions fuel domestic chipmaking in China,” said Jacob Bourne, an analyst at Emarketer, after the release of the report.
He said the question now is whether Nvidia's “diving into robots” will help maintain its role as “the true nature of the AI economy.”
