Nvidia achieves another milestone quarter as capital expenditures hit new highs

Nvidia Achieves Unprecedented Profits Amid Surging AI Demand

Nvidia, the world’s most valuable chipmaker, has announced record-breaking profits for its latest quarter, fueled by soaring interest in AI computing.

CEO Jensen Huang highlighted the explosive growth in demand for AI processing power during a call with analysts. “We’re witnessing exponential growth in token demand globally,” Huang remarked. “Even our older, six-year-old GPUs hosted in the cloud are fully utilized, and prices are climbing as a result.”

Revenue Soars on Data Center Strength

In the most recent quarter, Nvidia generated $68 billion in revenue—a 73% increase compared to the previous year. Of this, $62 billion was attributed to the company’s data center segment.

Breaking down the data center earnings, Nvidia reported $51 billion from computing solutions, primarily GPUs, and $11 billion from networking products such as NVLink. The company’s total revenue for the year reached $215 billion.

China Market Remains Unchanged Despite Policy Shifts

Despite the U.S. government easing export restrictions, Nvidia did not report any revenue from chip sales to China this quarter. Chief Financial Officer Colette Kress explained, “Although the U.S. government approved limited shipments of H200 products for customers in China, these have not yet resulted in any revenue, and it remains uncertain whether future imports will be permitted.”

Kress also noted the progress of Chinese competitors, referencing Moore Threads’ recent IPO. She warned that these emerging rivals could potentially reshape the global AI landscape over time.

Strategic Investments and Partnerships

During the investor call, Huang discussed Nvidia’s ongoing negotiations to invest in OpenAI, with reports suggesting the deal could be worth up to $30 billion.

“We are actively working toward a partnership agreement with OpenAI and are optimistic about reaching a conclusion soon,” Huang stated. He also mentioned collaborations with Anthropic, Meta, and Elon Musk’s xAI. However, Nvidia’s filings with the U.S. Securities and Exchange Commission clarified that there is no guarantee the OpenAI investment will be finalized.

TechCrunch Founder Summit 2026

Save up to $300 or 30% on tickets to the TechCrunch Founder Summit!

Join over 1,000 founders and investors in Boston, MA, on June 9, 2026, for a day dedicated to growth, execution, and scaling real-world businesses. Learn from industry leaders, connect with peers facing similar challenges, and leave with actionable strategies you can implement right away. Offer ends March 13.

AI Compute Investments and Future Growth

Huang also addressed questions about the sustainability of large capital expenditures by tech companies, expressing confidence that these investments in computing infrastructure will soon translate into revenue.

“In the era of AI, computing power directly drives revenue. Without sufficient compute, token generation—and thus revenue growth—is impossible,” Huang explained. “We’ve reached a pivotal moment where we’re producing valuable tokens that benefit both our customers and cloud service providers.”