Nvidia has posted another record quarter as demand for its advanced chips, crucial to powering artificial intelligence, continues to surge despite US-China trade tensions.
The chip designer reported $46.7bn (£34.6bn) in revenue for the second quarter of 2025, a 56% jump from a year earlier. Data centre sales, which drive most of its growth, rose by the same margin to $41.1bn.
Chief executive Jensen Huang told analysts that spending on AI infrastructure by four major technology firms had doubled to $600bn annually, underscoring the pace of investment in the sector. “The AI race is now on,” Huang said, adding that artificial intelligence could ultimately accelerate global GDP growth, with Nvidia at the centre of the transition.
Despite the strong performance, Nvidia’s shares fell in after-hours trading as the company acknowledged ongoing “geopolitical issues” linked to US export restrictions on sales to China. In July, Washington began reviewing licenses for Nvidia’s H20 chips, designed for Chinese customers, though none have been shipped so far. The company is also seeking approval to sell its latest Blackwell chips into the Chinese market.
The restrictions, aimed at curbing China’s military access to advanced AI technology, have forced Nvidia to adapt product strategies. Analysts warn they may also accelerate China’s efforts to build a domestic chip industry that could challenge Nvidia’s dominance.
Nvidia recently became the world’s first $4trn company by market value and expects revenue for the current quarter to rise further to $54bn, above Wall Street forecasts. However, uncertainty over US trade policy remains a key risk for the firm as it balances booming global demand with political headwinds.
