Nvidia smashes forecasts with record quarter as AI boom rolls on

Nvidia designs the graphics processing units (GPUs) that have become the backbone of the global artificial intelligence boom.

Nvidia on Wednesday reported blockbuster quarterly results that blew past Wall Street expectations, posting record revenue of $68.1 billion as insatiable demand for its artificial intelligence chips showed no sign of cooling.

The figures, up 73 percent from a year ago and well above the $65.7 billion analysts had forecast, sent a powerful signal that the technology buildout dominated by Nvidia that underpins the global AI boom remains in full swing.

Net income for the quarter more than doubled year-on-year to $42.96 billion, causing a share price bump that was quickly erased by apparent investor profit taking.

Nvidia designs the graphics processing units (GPUs) that have become the backbone of the global artificial intelligence boom.

Founded in 1993 by Jensen Huang, who remains CEO, the Santa Clara, California-based company commands a market capitalization exceeding $4.7 trillion, making it the world's most valuable publicly traded company.

Combined capital expenditure from the four major AI builders, Google, Amazon, Meta and Microsoft, could approach $700 billion this year as the tech giants race to stay ahead in the crucial technology.