Nvidia Corp. posted record revenue, driven by a 90% surge in data center demand and what CEO Jensen Huang described as 'parabolic' demand for its Blackwell systems. The stock dipped slightly after hours, but remains up nearly 20% year-to-date.
Huang’s core message: 'Customers do not buy GPUs; they build AI factories.' He argues the key metric is tokens per dollar over the lifetime of these factories, not just chip price.
A new reporting framework splits data center revenue into hyperscale (50% of revenue) and a faster-growing category: AI clouds, industrial, and enterprise (ACIE). Huang expects ACIE to eventually be the larger segment.
Agentic AI is reshaping demand. Nvidia introduced Vera, a CPU 'purpose-built for agentic AI,' opening a potential $200 billion market. Huang predicts 'billions of agents' will drive demand for both CPU orchestration and GPU inference.
Nvidia is tightening ties with frontier model makers like OpenAI and Anthropic, with co-designed architectures. Its edge computing business generated $6.4 billion in revenue, up 29%, with growth in robotics and autonomous vehicles.
Huang concluded: 'The world is rebuilding computing for agentic AI and robotic physical AI. Nvidia sits at the center of these transitions.'