This article first appeared on GuruFocus.
Nvidia (NVDA, Financials) reported another blockbuster quarter, showing how central its chips have become to the artificial intelligence buildout, even as political friction with China lingers in the background.
The company posted $46.7 billion in revenue for the three months ended July, up 56% from last year. Data center sales, its largest business, also rose 56% to $41.1 billion. Still, those results came in just shy of some analyst expectations, sending shares lower in after-hours trading.
CEO Jensen Huang told analysts the AI spending cycle is accelerating, pointing to $600 billion in annual outlays from four major tech firms. The AI race is now on, Huang said, adding that Nvidia’s role is to provide the infrastructure powering that push.
The boom has made Nvidia the world’s first $4 trillion company, but it hasn’t escaped trade tensions. The Trump administration temporarily blocked sales of its H20 chip to China earlier this year, though some licenses have since been approved.