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Nvidia has become one of the world’s most valuable companies thanks to its focus on AI chips, but great results don’t seem good enough for some investors.
Nvidia continues to see massive revenue boosts thanks to the AI boom, but its success is not enough to satisfy some of its investors.
The chipmaker made more than $30bn in revenue in its second fiscal quarter 2025, a 15pc increase on the first quarter and a 122pc increase year on year. The company’s net income grew to nearly $16.6bn, a year-on-year increase of 168pc.
Diluted earnings per share also went up by 168pc year on year during the same period. Despite these record results, Nvidia’s share price fell by 6pc after the results were announced. An analyst speaking to the BBC said Nvidia’s rate of growth is starting to slow.
In its earnings report, Nvidia said all of its key sectors – from data centres to automotive and robotics – reported steady growth in the latest quarter. The company also shared a positive outlook on the next quarter and expects revenue to reach roughly $32.5bn.
“Nvidia achieved record revenues as global data centres are in full throttle to modernise the entire computing stack with accelerated computing and generative AI,” said Nvidia CEO and founder Jensen Huang.
“Blackwell samples are shipping to our partners and customers. Spectrum-X Ethernet for AI and Nvidia AI Enterprise software are two new product categories achieving significant scale, demonstrating that Nvidia is a full-stack and data centre-scale platform. Across the entire stack and ecosystem, we are helping frontier model makers to consumer internet services and now enterprises. Generative AI will revolutionise every industry.”
Nvidia has grown in leaps and bounds over the past couple of years and is one of the most valuable companies in the world, thanks to its dominant position in providing the bulk of the powerful chips needed to develop generative AI models.
But Rodrigo Liang, CEO and co-founder of SambaNova Systems, says Nvidia has “lost some of its sheen” as its next-generation chips are facing delays and “rivals are biting at its heels”.
Meanwhile, the US Department of Justice is investigating complaints made against Nvidia by its competitors alleging that the AI chipmaker is stifling competition in the chips market.
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