Nvidia has another record quarter amid record capex spends

Source: TechCrunch

Chip giant and world’s most valuable company Nvidia reported record profits in its most recent quarter on Wednesday, as demand for AI compute continues to skyrocket.

“The demand for tokens in the world has gone completely exponential,” CEO Jensen Huang said on a call with analysts following the results. “I think we’re all seeing that, to the point where even our six‑year‑old GPUs in the cloud are completely consumed and the pricing is going up.”

Financial Results

• Revenue: $68 billion in the quarter, up 73 % year‑over‑year.
• Data‑center revenue: $62 billion, split into:
  • $51 billion compute revenue (largely GPUs)
  • $11 billion networking products (e.g., NVLink)
• Full‑year revenue: $215 billion

China Export Situation

Nvidia did not report any revenue from chip exports to China, despite the recent lifting of U.S. export restrictions.

“While small amounts of H200 products for China‑based customers were approved by the US government, they have yet to generate any revenue, and we do not know whether any imports will be allowed into China,” said CFO Colette Kress.

Kress added that Chinese competitors, bolstered by recent IPOs such as Moore Threads’ December 2025 listing, “have the potential to disrupt the structure of the global AI industry over the long term.”

Potential OpenAI Investment

During the investor call, Huang addressed Nvidia’s pending investment in OpenAI, which has been reported at $30 billion.

“We continue to work with OpenAI toward a partnership agreement. We believe we are close,” Huang said.

However, statements filed with the U.S. Securities and Exchange Commission on Wednesday emphasized that there was “no assurance” an investment would take place. The filing can be viewed here.

Capex Sustainability

Huang also responded to concerns about the sustainability of tech companies’ capital‑expenditure commitments, referencing a discussion on AI capex race dynamics.

“In this new world of AI, compute is revenue. Without compute, there’s no way to generate tokens. Without tokens, there’s no way to grow revenues,” Huang said. “We’ve reached the inflection point and we’re generating profitable tokens that are productive for customers and profitable for the cloud service providers.”