Nvidia's quarterly revenue hits record $133 billion, driving up Samsung and SK Hynix stock prices

Nvidia has announced record-breaking quarterly results, with revenue reaching $133.2 billion and net profit hitting $82.6 billion for its fiscal second quarter (May-July). This performance significantly surpassed market forecasts of $92 billion, demonstrating the company's continued strength amidst concerns about an AI bubble and 'circular trading.'

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AI is at an inflection point right now. Compute is now revenue.

The company's AI data center division was the primary driver, accounting for $89 billion, or 92%, of total revenue. This segment saw a 117% year-over-year increase. The edge computing sector, which includes chips for PCs, gaming consoles, and vehicles, also grew by 27% to $7.2 billion.

Nvidia CEO Jensen Huang described the current moment as an 'inflection point' for AI, calling it a 'golden age' where not just a few institutions but AI research labs and startups are driving infrastructure demand. He projected that revenue could grow by approximately 70% in fiscal year 2028, though he noted this estimate is based on the company's supply capacity rather than demand, which is nearly double that figure.

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Last year, only a few institutions led infrastructure construction, but now AI research labs and startups are all jumping in. It's the 'golden age' of AI.

This surge in demand, particularly for high-bandwidth memory (HBM), has led to supply constraints. Nvidia's commitment to securing components for its next-generation AI accelerators, like 'Blackwell,' is reflected in its $385 billion in outstanding purchase commitments and prepayments, more than double the previous quarter. This increased demand has positively impacted the stock prices of its key memory suppliers, Samsung Electronics and SK Hynix, with Samsung's stock rising 2.29% and SK Hynix's by 3.26% on the news.

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If there were no supply constraints, we would have estimated a much higher revenue growth rate.