Nvidia's AI Chip Dominance

Nvidia's Q2 fiscal year 2025 earnings reveal substantial growth, with revenue reaching $30.0 billion, a 122% increase year-over-year. GAAP earnings per diluted share rose to $0.67, up 168% from the previous year. The data centre sector is a key driver, with revenue hitting a record $26.3 billion, marking a 154% increase from the prior year. This growth is fuelled by strong demand for Hopper architecture and anticipation for Blackwell.

Analysts predict continued growth, estimating earnings per share of $1.01 and revenue of $46.0 billion for the next quarter. Data centre revenue is expected to surge by over 130%. However, concerns exist about potential trade policy headwinds and the impact of China export restrictions, which previously cost Nvidia $2.5 billion in lost revenue. Despite these challenges, Wall Street remains optimistic, with most analysts rating Nvidia as a 'buy'.

Nvidia is actively innovating, introducing generative AI models and microservices for OpenUSD to enhance industrial digital twin and robotics development. They're also expanding AI capabilities for gaming and professional visualisation. The company's financial strength is underscored by a new $50.0 billion share repurchase authorisation.