Roula Khalaf, the Editor of the FT, chooses her favorite stories for the free weekly newsletter known as the Editor’s Digest. Nvidia’s revenue more than doubled in the past quarter as demand for powerful chips that can support artificial intelligence tools skyrocketed. The company from Silicon Valley reassured investors that they would generate “several billion dollars” in revenue this fiscal year from their new generation of AI chips, despite facing production challenges. Nvidia’s revenue in the three months through July was $30 billion, a 122% increase from the previous year. The company is expecting $32.5 billion in revenue for the current quarter. Investors were disappointed as shares fell about 3% in after-hours trading despite the strong earnings report. Nvidia also approved $50 billion in share buybacks. The highly anticipated earnings report provided a glimpse into how the tech sector’s artificial intelligence boom is performing. Nvidia’s CFO, Colette Kress, announced that production of the Blackwell chips is on track to begin in the fourth quarter and continue into fiscal 2026. The company’s CEO, Jensen Huang, confirmed strong demand for their current-generation Hopper chips. Nvidia’s stock market performance has been impressive, with shares soaring up to 160% this year and contributing to over a quarter of the S&P 500’s gains. The latest quarterly results from big tech companies like Google, Microsoft, Meta, and Amazon have highlighted the significant investment in building infrastructure to support AI models. These companies are also major customers of Nvidia, and their earnings reports are closely watched to gauge the overall sentiment around AI technology. Daniel Newman, CEO of Futurum Group, described Nvidia’s latest earnings report as solid and expects solid performance in the future.
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