Nvidia Revenue Jumps 122% in Positive Sign for Tech’s A.I. Boom

This summer, Wall Street and Silicon Valley began to question whether generative artificial intelligence could produce enough benefits to justify its staggering costs.

But the chipmaker Nvidia showed on Wednesday that enthusiasm for A.I. is still running hot. The company, a bellwether for A.I. spending, blew past Wall Street’s expectations for another quarter, reporting that its sales and profit had more than doubled during the three months that ended in July. It also projected that sales in the current quarter would increase 80 percent from a year ago, exceeding earlier estimates.

Revenue was $30.04 billion in the quarter, surpassing its $28 billion estimate in May. Net income rose to $16.95 billion from $6.19 billion a year ago, eclipsing the most recent quarterly profits of Meta and Amazon.

Shares in the company, which has been one of the market’s hottest stocks, fell by as much as 7 percent in after-hours trading, as the company acknowledged that it had some production challenges with a forthcoming A.I. chip. It said that the chip would still be available to customers this year.

The company said it would spend an additional $50 billion on repurchasing its own shares. In the quarter ending in July, it spent $15.4 billion on share repurchases and dividends.

The results speak to how Nvidia continues to dominate the market for A.I. chips, even as it faces rising competition and staggering expectations. Years before other big chip companies, Nvidia’s chief executive, Jensen Huang, bet that semiconductors known as graphics processing units, or GPUs, would make A.I. systems possible. He built the company over the ensuing years to corner the market.