On Wednesday, US chipmaking giant Nvidia announced a staggering $19 billion profit for the last quarter, buoyed by unprecedented demand for its hardware, which is integral to artificial intelligence (AI) technologies. The company reported a record revenue of $35.1 billion, exceeding market expectations by $2 billion.

“The age of AI is in full steam, propelling a global shift to Nvidia computing,” said Jensen Huang, Nvidia’s founder and chief executive. He emphasized the transformative impact of AI, stating, “AI is transforming every industry, company, and country.”

Huang highlighted the strong demand for Nvidia’s recently launched Blackwell processing platform, which is now in full production, alongside its current-generation Hopper processors.

According to Huang, these processors are driving enterprises’ adoption of “agentic AI” to revolutionize workflows. Additionally, industrial robotics and physical AI investments are surging as countries increasingly prioritize national AI infrastructure development.

Nvidia’s dominant role in the AI industry has propelled it to the forefront of global technology. Earlier this month, it surpassed Apple to become the world’s most valuable company. Major tech players like Microsoft, Google, Meta, Tesla, and Amazon depend on Nvidia’s advanced AI chips and software to power their generative AI models and handle intensive computing tasks.

Despite the record-breaking financial performance, Nvidia’s share price dipped nearly 2% in after-hours trading to $143.24. This decline reflects investor concerns about potential margin pressures, with the company forecasting narrower profit margins shortly.

“Despite Nvidia’s technological leadership through CUDA and its first-mover advantage in AI infrastructure, there’s little room for execution missteps in 2025,” said Emarketer analyst Jacob Bourne. He noted uncertainties surrounding the rollout of Nvidia’s Blackwell platform and growing competition from rivals like AMD and in-house chip development by key customers.