Nvidia delivered another set of record-breaking results for its January quarter on Wednesday, bolstered by the relentless demand from “Big Tech” for its specialized AI processors. The company posted a 94% increase in sales, reaching $68.1 billion, and projected current-quarter revenue of approximately $78 billion, comfortably exceeding market expectations of $72.6 billion.
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Despite the “beat and raise” performance, Nvidia’s stock remained flat in after-hours trading. Having exceeded revenue estimates for 14 consecutive quarters, investors appeared underwhelmed by the lack of a massive surprise. During the earnings call, analysts questioned the company’s plans for its projected $100 billion in cash generation this year, specifically regarding shareholder returns. In response, CFO Colette Kress emphasized a strategy of reinvestment, stating the company remains focused on expanding the broader AI ecosystem. CEO Jensen Huang doubled down on this vision, asserting that AI-generated output is the permanent foundation of future computing and that Nvidia will continue to scale infrastructure to meet this shift.
Addressing concerns over a supply crunch at its primary manufacturer, TSMC, Nvidia assured stakeholders it has secured enough capacity to meet demand for several quarters. However, the company noted that inventory constraints would likely continue to impact its traditional gaming segment. While Nvidia’s dominance remains firm, the landscape is shifting. Customers like Meta have forecast capital expenditures of $630 billion for 2026, the majority of which is earmarked for data centres. Meanwhile, smaller rivals are gaining ground; AMD is preparing to launch a flagship AI server later this year, and Google is gaining traction with its in-house TPU chips, which currently power Anthropic’s Claude chatbot. Major tech firms are increasingly designing their own proprietary chips to reduce dependency on external vendors.
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Nvidia reported quarterly sales of $68.1 billion against an estimated $66.2 billion, while adjusted profit came in at $1.62 per share, beating the $1.53 estimate. Notably, sales concentration among top clients increased, with just two customers now accounting for 36% of total revenue. Nvidia’s latest figures suggest the AI gold rush is far from slowing down, but the company now faces the twin challenges of managing immense investor expectations and a growing field of competitors hungry for a piece of the data centre market.
