Nvidia just blew its results out of the water thanks to a technology spending wave that analysts haven’t seen ‘since the internet in 1995’

Jensen Huang, CEO of NVIDIA, at a 2023 press conference in Taipei.

Sam Yeh / Contributor

Nvidia announced a record revenue for Q2 of the 2024 fiscal year — $13.51 billion. The chip company counts almost every big tech company as a client, including Meta, Google Cloud, and Oracle. Analysts are calling the company’s results a “1995 moment,” evoking the internet’s boom.

Nvidia, the leading company behind GPU chips used for artificial intelligence software, announced groundbreaking revenue for its second quarter.

In an earnings call Wednesday, the company, known for designing graphics hardware, said its quarterly revenue was $13.51 billion — up 88% from the previous quarter, and up 101% from one year ago. The enormous revenue reflects an increase in AI spending from Nvidia’s largest clients, such as Google Cloud, Meta, and Oracle.

In the next quarter of this year, Nvidia expects to have a revenue of about $16 billion, well over Bernstein analysts’ estimate of $11.35 billion.

These results, while impressive on their own, have larger implications for the “AI Gold Rush,” according to analysts from Wedbush Securities.

Wedbush referred to the AI industry as a “1995 Moment and not 1999/2000,” referencing the year that interest in the Internet exploded — and lasted — and the speculative bubble of the late 20th century that burst in the first years of the 2000s.

“This build out is unlike anything we have seen since the Internet in 1995 and the ramifications are just starting to ripple through the consumer/enterprise landscape,” Wedbush analysts said in a statement.

Growth in the IT sector grew an average of 24% per year from 1995 to 2000, but dropped sharply in 2001 and 2002, according to a report from Mark Doms, a senior economist at the Federal Reserve Bank in San Francisco.

According to estimates from the International Data Corporation, spending on AI will grow by 27% on average every year between 2022 and 2026.

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