Nvidia and Tesla's recent performance stands in contrast to the generally strong earnings season experienced by other major US technology companies. While many tech firms have thrived, these two companies have emerged as outliers.
Nvidia's Q2 revenue reached $46.74 billion, a 56% year-over-year increase, with net income surging 59% to $26.42 billion. The company's data centre business is a primary revenue driver, projected to scale from $3 billion in fiscal year 2020 to $115 billion in fiscal year 2025. Tesla's Q2 earnings saw revenue of $22.5B, beating forecasts by $100M. Automotive revenue was up 19% sequentially, with a 14% increase in deliveries. The company launched Robotaxi in Austin and expanded AI capabilities.
Despite solid business performance, both Nvidia and Tesla have experienced some investor nervousness, with rallies losing steam. Nvidia ships nearly 72,000 Blackwell units per week to hyperscalers like Meta and Google, who have increased data centre spending to secure these GPUs. The company's networking revenues have reached a $10 billion annual run rate, driven by Ethernet adoption alongside proprietary InfiniBand.
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