NVIDIA is (really) profiting from the AI boom

NVIDIA's revenue for the second quarter ending on July 27 rose 56% compared to the same period last year, reaching $46.7 billion and a net income of $26.4 billion. This is the ninth straight quarter where the company's year-on-year revenue increase has exceeded 50%, driven by the AI boom. The company's H20 chips, designed for the Chinese market, were initially blocked from being shipped there by the US government, costing the company $8 billion in potential sales. However, the government later told NVIDIA that it would be able to ship the H20 to China again, though Chinese authorities have discouraged local tech firms from using the chips. NVIDIA is now believed to be developing a new, more advanced chip for China based on its Blackwell architecture. Meanwhile, sales for the Blackwell-based chips rose 17% from the first quarter, reaching $27 billion in sales and representing 50% of the company's data center revenue.