Nvidia posted record revenues of 30 billion but fails to convince investors

Nvidia broke its revenue record again. The California-based artificial intelligence chipmaker posted 30 billion in revenue for the quarter ending in July, which was up 15% from the previous quarter and 122% higher than the same period last year.

Nvidia's quarterly earnings report has become highly anticipated in the business and financial world, given that the company has been amassing a high degree of excitement since 2023.

In this case, the 30 billion in revenue exceeded the 28.7 billion anticipated from Wall Street.

"NVIDIA achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI," the company's CEO Jensen Huang celebrated in a statement released Wednesday, Aug. 28.

"Across the entire stack and ecosystem, we are helping frontier model makers to consumer internet services, and now enterprises. Generative AI will revolutionize every industry," he added.

As for the earnings backdrop, The Wall Street Journal reported the following, "The big tech companies' outlays on AI have boosted Nvidia's results. Google's parent company, Alphabet, said last month that its capital spending would increase during the second half of this year, at least $12 billion per quarter. Amazon.com, Microsoft, and Meta have also increased spending in recent quarters, with much of the money going to AI-focused data centers housing Nvidia chips."

However, the good results didn't end up convincing investors 100 percent. As it turns out, the company's share price fell seven percent in post-closing trading Wednesday night.