Nvidia continues record breaking streak but not everyone is convinced

The world's most valuable company has reported another series of record-breaking and expectation-defying results, easing fears, for now, of a slowdown in the AI boom.

Nvidia, the company worth a whopping $5.34trn (£3.97trn), said its revenue reached another all-time high, hitting $81.6bn (£60.7bn) in the three months to April, far outpacing Wall Street estimates and the company's own guidance.

Profits at the chipmaker topped more than $58bn (£43bn), it said on Wednesday evening, more than three times as much as a year ago.

Originally a creator of gaming graphics hardware, Nvidia's chips help power artificial intelligence (AI) capability - and the UK's most powerful supercomputer, putting it at the centre of the global AI boom.

As a result, its performance is one of the most important gauges of the health of AI growth.

"AI is no longer a nice-to-have," the company told investors as it said its customer base is "diverse and growing".

AI spending is due to hit $3trn to $4trn this decade, it added.

Why does the AI boom matter?

Building AI infrastructure, particularly data centres, has given a major boost to the US economy.

Faltering AI expansion, therefore, would affect the world's largest economies, which in turn would impact the UK and global economies.

Why does Nvidia matter?

Nvidia in particular is also important due to its stock market impact.

As its share price reached stratospheric highs, it has helped bring the US's major stock indexes to new records. Accordingly, its results impact the health of the global stock market.

It counts most of the world's tech giants as customers and its graphics processors underpin products such as ChatGPT from OpenAI and Gemini from Google.

Some concerns

The fact that many of its clients are a few major companies - Google-owner Alphabet, Microsoft, Amazon and Meta - known as hyperscalers, remains a worry for some observers.

Those looking for an update on new customers in this announcement will have been disappointed, though Nvidia chief executive Jensen Huang said: "Demand has gone parabolic."

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Nvidia has also invested in its own clients and a swathe of the AI industry, prompting worry over circular investment, with the industry fuelling itself, rather than genuine consumer demand.

Continuing boom?

There's no sign of a slowdown in Nvidia's forecasts.

Its latest projection is for $91bn (nearly £68bn) in sales for the current three-month financial period.

It also believes revenue from its blackwell and rubin chips could reach $1trn by 2027.

But Nvidia's shares fell slightly in after-hours trading, signalling perhaps uncertainty over the share buyback proposal, which will see the company return money to shareholders, potentially taking funds away from the AI arms race it's in against its rivals.

(c) Sky News 2026: Nvidia continues record breaking streak but not everyone is convinced