NVIDIA reported record-breaking Q2 fiscal 2025 results on August 28, with revenue soaring 122% year-over-year to $30 billion, driven by explosive growth in data centre sales as demand for AI computing accelerates.
The Santa Clara-based chipmaker's performance far exceeded expectations, with data centre revenue skyrocketing 154% from a year ago to $26.3 billion. This surge reflects the global rush to adopt generative AI technologies, which rely heavily on NVIDIA's advanced GPUs.
NVIDIA founder and CEO Jensen Huang emphasised the company's pivotal role in the AI age of today, stating, "NVIDIA achieved record revenues as global data centres are in full throttle to modernise the entire computing stack with accelerated computing and generative AI."
The company's GAAP earnings per diluted share reached $0.67, a 168% increase from the previous year. Non-GAAP earnings per diluted share rose 152% to $0.68.
NVIDIA's success extends beyond hardware. Huang highlighted the growing importance of the company's software offerings, noting, "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."
Looking ahead, NVIDIA provided an optimistic outlook for Q3 fiscal 2025, projecting revenue of $32.5 billion, plus or minus 2%. This forecast suggests continued strong demand for AI-related products and services.
The company's financial strength is evident in its aggressive shareholder return programme. During the first half of fiscal 2025, NVIDIA returned $15.4 billion to shareholders through share repurchases and dividends. The Board of Directors approved an additional $50 billion in share repurchase authorisation, signalling confidence in the company's future prospects.
While data centre sales dominated, other segments also showed growth. Gaming revenue increased 16% year-over-year to $2.9 billion, while automotive revenue rose 37% to $346 million.
NVIDIA's results underscore the transformative impact of AI on the tech industry and the broader economy. As Huang noted, "Generative AI will revolutionise every industry."
NVIDIA's exceptional Q2 performance cements its position as a leader in the AI race. With continued innovation across its product lines and strong demand for AI computing, the company appears well-positioned for sustained growth in the coming quarters.